Accounting for Modelers · Statements
Forecasting Drivers: Revenue, Margins & Working Capital
Turning history into a forecast: revenue builds (price × volume, customers × ARPU, market × share), margin assumptions, working capital days (DSO, DIO, DPO) and the cash conversion cycle, capex and D&A, scenarios and sanity checks.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: Build a three-statement model from a 10-K; Linking the statements. Next: Debt schedules & circular references. Sources: Wall Street Prep and Breaking Into Wall Street modeling guides; McKinsey, *Valuation* (7th ed.) ch. 13.Next: 1. Revenue builds