Financial Modeling Question
I'm doing a model. Since we have 3Q07 data, how do we present the income statement for 2007 in a model? SO far, i have 2004, 2005, and 2006 for my historical side of the model. For 2007, should i show the sum of the first three quarters and do an estimate starting with 4Q07E, 2008E, 2009E, etc.?
thanks.
Take first three quarters' actual results and then use analyst/company estimates for 4Q07E and label the whole column 2007E since that's what it technically is even if just one quarter is an estimate. Then use analyst estimates for 2008, 2009E, etc.
Probably best to do 2004A, 2005A, 2006A, 1Q07A, 2Q07A, 3Q07A, 4Q07E, 2007E, 2008E, 2009E, etc., and group/hide the quarter columns for ease of use and presentation.
At the end of the day, it is a matter of preference whether you have the quarters broken out or if you have 2007, but for purposes of making it dynamic, you would want the 4Q estimates separated from 1Q to 3Q, and for purposes of comparing across years you would want the full 2007 sum.
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