Introduction to Financial Statement Modeling

Free CFA Level I lesson in Financial Statement Analysis. 14 min read, ~2,169 words.

Sales-based pro forma flow: forecast revenue first, then COGS, SG&A, D&A, interest, taxes, working capital, capex, financing. Five Porter forces (rivalry, new entrants, substitutes, buyer power, supplier power) drive sustainable pricing and cost pass-through. Inflation pass-through depends on pricing power. Strong competitive position = unit growth + price hikes; weak...

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