| name | financial-model |
| description | Structure an integrated 3-statement financial model - drivers, income statement, balance sheet, cash flow, and the links between them - with assumptions and checks. Use when building or reviewing a model. |
financial-model
A 3-statement model that ties out: the statements link, the balance sheet balances, cash flows reconcile.
Structure
- Assumptions/drivers (one clearly-labeled section): growth, margins, capex, working-capital days, tax,
financing. Every driver explicit and sourced/justified.
- Income statement: revenue -> EBIT -> net income, driven by the assumptions.
- Balance sheet: working capital from days, PP&E from capex/D&A, debt/equity from financing.
- Cash flow: operating (from NI + D&A + change in NWC), investing (capex), financing (debt/dividends);
ending cash flows to the balance sheet.
- Links + checks: the three statements connect; balance sheet balances; build a checks row (BS check,
cash tie-out). Note circularity (interest on average debt) and how it's handled.
Output
- The model structure with assumptions, the three linked statements, and the integrity checks (what proves it
ties out). Scenario toggles where useful (
scenario-analysis).
Guardrails
- Historicals sourced; projections labeled as assumptions (
projection-guard).
- Checks must pass (BS balances, cash ties) - re-derive; don't ship a model that doesn't foot.
- Units/period consistent (
accuracy-precision).
