Retained earnings formula: reconcile profit, dividends and the balance sheet
Build a two-year retained earnings roll-forward with a profit year and a loss year, catch a dividend sign error and reconcile the result to balance-sheet equity.
THE FINX JOURNAL LEARN BY DOING
Financial modelling
Understand how a model fits together, follow its connections and practise finding the mistakes behind the numbers.
In this topic
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Working capital schedule: forecast receivables, inventory and payables
Build a three-year operating working capital schedule from DSO, DIO and DPO drivers, check the cash-flow sign of each change and catch a payables forecast on the wrong base.
Comparable company analysis: build a peer set and valuation range
Build a trading-comps example in Excel: select peers, calculate EV/EBITDA, handle a loss-making company and bridge enterprise value to equity value with checked answers.
DCF model example: build cash flow, terminal value and equity value
Build a five-year DCF model in Excel with checked formulas, a terminal-value timing fix and a sensitivity table. Follow the bridge from enterprise to equity value.
Balance sheet not balancing? Follow the cash before changing a number
Find a missing cash-flow entry in a worked financial model. Reconcile cash, debt and equity, then test whether your correction fixes the cause.
Build a debt schedule: connect repayments, interest and closing debt
Build a three-year debt schedule with borrowing, capped principal repayments and interest. Check the cash-flow links and see why payment timing matters.