WSP Financial Modelling Exa with verified detailed
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solutions
Why do you never want to re-enter the same input more than once in your model? - ✔✔Bc. you
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want your model to be dynamic
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Components of a financial statement model? - ✔✔Income statement || || || || || || || ||
Balance sheet ||
Statement of cash flows || || ||
Both historical results and forecasts
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What colour text should you use for:
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Hard-coded inputs ||
Formulas
Links to other worksheets
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Links to other files
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Links to data providers - ✔✔Hard-coded inputs -> blue
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Formulas -> black || ||
Links to other worksheets -> green
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Links to other files -> red
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Links to data providers -> dark red
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Should you hide rows? - ✔✔No, grouping is better
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Should you merge cells? - ✔✔No, centering across selection is better
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, Footnotes vs comments? - ✔✔Footnotes will show up when model is printed
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Comments for internal purposes || || ||
If you want to delete a worksheet and want to know if there are any links to that worksheet, how
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can you do this? - ✔✔Ctrl + F
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and then search for the name of the worksheet you want to delete
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What documents would you gather prior to starting to model? - ✔✔Latest annual report and
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corresponding 4th quarter press release and earnings call transcript || || || || || || || ||
Latest equity research & EPS consensus estimates
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Last 6 months news run (stock splits, acquisitions and other material changes)
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For quarterly models and LTM calculations...
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-also get latest 3 quarterly reports and corresponding press releases & earnings calls
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Why pay attention to press releases and earnings calls? - ✔✔Available weeks before the relevant
|| || || || || || || || || || || || || || ||
annual/quarterly report -- if you ignore the press release, you could be ignoring an entire quarter || || || || || || || || || || || || || || || ||
of availabe results
|| ||
Has non-GAAP disclosures
|| ||
May have management guidance
|| || ||
What kind of equity research reports are very helpful if you're trying to get up to speed with an
|| || || || || || || || || || || || || || || || || || ||
industry? - ✔✔initiating coverage research reports || || || || ||
|| || || || || || ||
solutions
Why do you never want to re-enter the same input more than once in your model? - ✔✔Bc. you
|| || || || || || || || || || || || || || || || || || ||
want your model to be dynamic
|| || || || ||
Components of a financial statement model? - ✔✔Income statement || || || || || || || ||
Balance sheet ||
Statement of cash flows || || ||
Both historical results and forecasts
|| || || ||
What colour text should you use for:
|| || || || || ||
Hard-coded inputs ||
Formulas
Links to other worksheets
|| || ||
Links to other files
|| || ||
Links to data providers - ✔✔Hard-coded inputs -> blue
|| || || || || || || ||
Formulas -> black || ||
Links to other worksheets -> green
|| || || || ||
Links to other files -> red
|| || || || ||
Links to data providers -> dark red
|| || || || || ||
Should you hide rows? - ✔✔No, grouping is better
|| || || || || || || ||
Should you merge cells? - ✔✔No, centering across selection is better
|| || || || || || || || || ||
, Footnotes vs comments? - ✔✔Footnotes will show up when model is printed
|| || || || || || || || || || ||
Comments for internal purposes || || ||
If you want to delete a worksheet and want to know if there are any links to that worksheet, how
|| || || || || || || || || || || || || || || || || || || ||
can you do this? - ✔✔Ctrl + F
|| || || || || || || ||
and then search for the name of the worksheet you want to delete
|| || || || || || || || || || || ||
What documents would you gather prior to starting to model? - ✔✔Latest annual report and
|| || || || || || || || || || || || || || ||
corresponding 4th quarter press release and earnings call transcript || || || || || || || ||
Latest equity research & EPS consensus estimates
|| || || || || ||
Last 6 months news run (stock splits, acquisitions and other material changes)
|| || || || || || || || || || ||
For quarterly models and LTM calculations...
|| || || || ||
-also get latest 3 quarterly reports and corresponding press releases & earnings calls
|| || || || || || || || || || || ||
Why pay attention to press releases and earnings calls? - ✔✔Available weeks before the relevant
|| || || || || || || || || || || || || || ||
annual/quarterly report -- if you ignore the press release, you could be ignoring an entire quarter || || || || || || || || || || || || || || || ||
of availabe results
|| ||
Has non-GAAP disclosures
|| ||
May have management guidance
|| || ||
What kind of equity research reports are very helpful if you're trying to get up to speed with an
|| || || || || || || || || || || || || || || || || || ||
industry? - ✔✔initiating coverage research reports || || || || ||
