The demand for financial modeling skills has increased exponentially in recent years and many job listings for finance positions now include “financial modeling” as a core skill. If you’re reading this book, you’ve probably already discovered how important this skill is, and you know that learning financial modeling will increase your employability in finance or financially focused fields.
Not every financial model needs to contain all three types of financial statements, but many of them do, and those that do are known as integrated financial statement models. You may also hear them referred to as “three-way financial models.” The three types of financial statements included in an integrated financial
statement model are the following:
» Income statement, also known as a profit-and-loss (P&L) statement
» Cash flow statement
» Balance sheet
