Introduction to financial statements

Financial Forecasting in Python

Victoria Clark

CGMA Financial Analyst

About this course

  • Analyze data in a simple way
  • Using Python
  • Model different sources of data
  • Financial forecasting basics
Financial Forecasting in Python

Financial statements, an introduction

  • Records of financial information
  • Universal format and clear structure
  • Used for decision making
  • Important metrics for forecasting
Financial Forecasting in Python

Types of financial statements

financial statements

Financial Forecasting in Python

How financial statements are used in forecasting

 

  • Build on the important metrics

  • Shows financial health of a company

  • Provides structure for solid financial         forecasting

    financial statements

Financial Forecasting in Python

The income statement \ profit & loss statement

  Two important elements:

  • Gross Profit:

    DIRECT sales and costs

  • Net Profit:

    INDIRECT income and expenses

  financial statements

Financial Forecasting in Python

Gross profit

DIRECT sales and costs

cogs = material_costs + 
       direct_labor_costs + 
       factory_costs

gross_profit = sales - cogs

financial statements

Financial Forecasting in Python

Net profit

INDIRECT income and expenses

opex = insurance +
       admin_sales + 
       r_d + 
       training_cost + 
       other_non_direct_costs

net_profit = gross_profit - opex

financial statements

Financial Forecasting in Python

Let's practice!

Financial Forecasting in Python

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