Knowledge Base: 3-Statement Model Tutorials

A 3-statement model links the Income Statement, Balance Sheet, and Cash Flow Statement of a company into a single, dynamic spreadsheet.

Companies may use 3-statement models for a wide variety of purposes, from internal budgeting (e.g., in the FP&A division within corporate finance) to planning for major acquisitions or the issuances of debt and equity to fund growth and expansion.

The model itself may be very simple (e.g., 100 rows or less in Excel) or very complicated, with multiple spreadsheets and supporting schedules to back up every single detail.

We prefer to build 3-statement models in the “mid-complexity range,” with enough detail to be useful but not enough to be overwhelming.

For a detailed example, please see our full 3-statement modeling tutorial and walkthrough.