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Gathering Historical Financials

Gather the relevant reports for Financial statement modeling means building the PIB, public information book

Industry and company knowledge for a financial statement model is garnered from equity research reports for forecast rates, margins, ratios

Leave a blank column in A for elevator drops

Have to change the row headers for each model depending on the accounts of the company

What is the purpose of the model? Valuation (annual model) vs borrowing needs (quarterly model)

Equity research models are quarterly (catalyst is corporate earnings)

For annual model, need latest 10K and 4th quarter press release (announces results with financials with important non-Gaap disclosures including EBITDA and nonrecurrings, and management guidance) and conference call transcript, latest sell side equity research (framing forecasts, industry and company knowledge embedded within forecast assumptions (drivers), reports published within a few days following latest quarter press release, look for full model reports, initiating coverage reports for industry knowledge) and EPS consensus estimates for target, last six months of news for stock split, acquisition or material changes. For quarterly models and LTM calculations, also get 3 latests 10Qs in addition to (Q1, Q2, Q3, 10K) and press releases and conference call transcripts

For digital PIBs, use ctrl F or ctrl shift n for page number

For private companies, wont have 10k or 10q and will need historicals as well as management guidance for projections

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