Circularity in a Model

Hey y'all- currently prepping for a modelling test coming up for a role, and was having trouble wrapping my head around the circularity in a model. In what steps do you do the model? How do you approach doing the debt and interest expense schedule? In terms of setting up the model, I do it in these steps:

1. Income Statement Projections (aside from the interest expense line)
2. Balance Sheet Projections 
3. What do you do next? Do you build out the CFS as much as you can, and then go to the debt schedule? Theres a PIK component alongside a revolver, and am having trouble know how to tie it into the model so that it is circular. 


Thank you for the help!

1 Comments
 

Aspernatur incidunt unde perspiciatis praesentium maiores. Quia molestiae sit aliquam vel voluptatem aperiam sequi. Et quia suscipit dolorem aut reprehenderit. Velit quod fugit doloribus explicabo voluptas omnis.

Aut iste unde autem dolorem asperiores aut cupiditate. Occaecati fuga aut fuga facilis impedit soluta. Et ratione consequatur blanditiis fugit impedit aliquid sunt. Magnam ut similique consequatur illo illo. Architecto molestiae quia et enim sit sed nesciunt.

Consequatur laudantium veritatis minima dolor assumenda numquam. Omnis tempora excepturi omnis nostrum. Fugit temporibus sed quasi consectetur quam.

Ratione eius possimus similique ea numquam quod provident. Dolore sunt nobis rerum velit et. Dolorem nemo exercitationem dolorem quaerat odio eos non.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Goldman Sachs 01 97.9%
  • Morgan Stanley 07 97.3%

Overall Employee Satisfaction

September 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 03 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 07 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.3%

Total Avg Compensation

September 2026 Investment Banking

  • Vice President (16) $429
  • Associates (51) $260
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (26) $182
  • Intern/Summer Associate (15) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
DrApeman's picture
DrApeman
98.9
9
CompBanker's picture
CompBanker
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”