Hello helpful Professionals,
I am building my first proper model right now on WTW - see attachment. The model is incomplete but I believe my projected B/S should balance where it is right now.I have read the tips in other similar threads here on WSO and no avail. I have done my best to format for ease of auditing so I hope someone here will be so kind as to take a quick look for me. This would be very much appreciated.
Thank you in advance,
BottomUp
PS - Thoughts on WTW are welcome. I'm working toward pitching this stock in an ER interview I have coming up.
| Attachment | Size |
|---|---|
| WTW.xls 88.5 KB | 88.5 KB |
Where is the attachment?
Uff, it didn't upload. It is there now.
There are some accounts I mashed together that definitely need to be separated out and have separate schedules built for them. I am following the example from a modeling course so I don't get confused and it is definitely not appropriate for WTW financials (Ie. the example company is 100% equity financed and WTW has a massive debt load). However, I believe it should still work the way I have set it up even if it isn't telling an accurate story... After I figure this out I can take a deeper dive and add more insight/detail to my assumptions.
I'm bored so I'll bite. There are two issues.
In your cash flow statement, there shouldn't be a line item for PPE. You already have depreciation and capital expenditures in there, so you're effectively double counting the change in PPE. Just delete that row.
For 2015-2018, your accounts payable formula in the cash flow statement is backwards. It should be CURRENT_YEAR-LAST_YEAR, so that if AP goes down, that's a drain on cash.
After those two changes your BS should balance.
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