An integrated financial model will normally contain 3 to 5 years of historical income statement and balance sheet information, with approximately the same line items as the available historical financial statements of the business to be analyzed. However some historical line items in the income statement and balance sheet of the financial model needs to [...]
As advertising spend migrates from print to online, the magazine publishing industry in some markets is seeing slower growth, with many magazine titles now needing to diversify into cross-platform editorial and advertising products that integrate the traditional print title with online and mobile product offerings. However, in many developing markets and also in markets where [...]
Financial valuations are often the end result of a financial modeling exercise, and a good financial analyst will ensure a rigorous approach, grounded in sound knowledge of valuation concepts, is taken to calculating and performing financial valuations when building a financial model. Some points to consider whenever performing a financial valuation: How much can the key assumptions [...]
Free cash flow (FCF) is equal to the after-tax operating earnings of the company plus non-cash charges less investments in working capital, plant, property and equipment (or PP&E), and other assets. FCF is the cash flow generated by a company that is available to all providers of capital, both debt and equity. The table illustrates [...]
The traditional, financial results led approach to assessing the viability of a project or business in a financial modeling exercise continues to work very well today, however, a more strategic approach to decision making has also emerged to complement the traditional process. Real options (or strategic options) are opportunities embedded in projects or investments that [...]
