Module 14 · Beginner to advanced · applied research
Financial statements and business modelling
Read accounts, reconcile cash, calculate returns and forecast an Indian business from operating drivers.
8 chapters · Concepts, worked examples and self-checks
Start first chapter →Helpful first: Industries and business economics
Study it. Test it. Write it down.
Reconcile before you forecast
Can the growth plan fund itself?
Use a fictional manufacturer with credit sales, inventory and a debt-funded expansion.
Your research task
- Link the three statements.
- Explain working-capital and capex cash.
- Stress revenue, margins, collection and dilution.
What you should produce
A driver model, cash bridge and financial-quality memo.
The trap to avoid: Treating accounting profit as immediately available cash.
Original hypothetical study exercise. Pair it with the chapter sources below; verify current contract rules and product terms separately.
Chapters in this module
0 of 8 completed on this browser
01Read the three statements as one business storyUnderstand the balance sheet, profit and loss account, cash flow and equity changes using a small Indian manufacturing business.3 min read→02Standalone, consolidated and segment numbersChoose the correct reporting boundary before comparing earnings, debt, margins and shareholder value.2 min read→03Profit quality: revenue, EBITDA, PAT and the notesRead the earnings bridge and test whether apparent growth comes from the operating business.2 min read→04Working capital: why profitable growth can need cashCalculate inventory, debtor and creditor days and connect them to the financing of an Indian operating business.2 min read→05Cash flow and free cash flow: follow what remainsBridge profit to operating cash and distinguish maintenance investment, expansion and financing.2 min read→06Ratios and DuPont: diagnose before rankingUse liquidity, leverage, profitability and return ratios with matched numerators, averages and economic context.2 min read→07Forecasting: build a model from operating driversConnect revenue, margins, working capital, capex and financing instead of applying a single growth percentage everywhere.2 min read→08Dilution, shareholding and the per-share realityFollow fresh equity, ESOPs, warrants and buybacks through ownership, EPS and capital allocation.2 min read→ ← All learning modules · Calculators
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