First Principles Approach to Financial Modelling in Excel – [Episode 1]

In this 3 episode series, we are going to take a “First Principles Approach to Financial Modelling in Excel” and build out a fully functional 3 statement model for a fictitious company called Dev’s Pulao from scratch.

Each and every company (right from Apple to your local retailer) has a business model through which they offer a core product(s)/service(s) to customers and try to create value for everybody involved in the value chain. In this series, we aim to help you understand how executing a business model as described above translates into Revenue, Profits and Cash flow – this is typically done through the 3 accounting statements – the P&L (Profit & Loss Statement), BS (Balance Sheet), CF (Cash Flow).

All material is completely free. All of the excels used in the episodes are available here

Course Index:

Episode 1
Segment 1: Introduction
Segment 2: Company Overview
Segment 3: Market Sizing
Segment 4: Unit Economics
Segment 5: Sources and Uses of Cash

Episode 2
Segment 6: Balance Sheet at Incubation
Segment 7: P&L (Income Statement)
Segment 8: BS (Balance Sheet)

Episode 3
Segment 9: CF (Cash Flow Statement)
Segment 10: Debt Schedule
Segment 11: Key Ratios

To get the most out of this course, it is important to watch each video in sequential order as every segment discusses new concepts and lays a foundation for the following segments