Free Template

Three-Statement Financial Model Template

A fully linked three-statement financial model connecting the income statement, balance sheet, and cash flow statement. Changes in one statement flow automatically to the others. Includes working capital assumptions, debt schedules, and equity roll-forward.

What's included

Everything in this template

  • Linked income statement, balance sheet, and cash flow statement
  • Working capital assumptions (DSO, DPO, inventory days)
  • Debt schedule with interest calculations
  • Equity roll-forward and dividend policy
  • Automated inter-statement balancing checks
  • Five-year projection horizon

Template preview

See the structure

fx=Net_Income + Depreciation - Change_in_Working_Capital - CapEx
Statement
Year 1
Year 2
Year 3
Revenue
£1.2M
£1.6M
£2.1M
Net Income
£120k
£180k
£260k
Total Assets
£800k
£1.0M
£1.3M
Free Cash Flow
£95k
£150k
£220k
Cash Balance
£280k
£430k
£650k

Step by step

How to use this template

1

Build the income statement

Start with revenue assumptions and work down through COGS, operating expenses, interest, tax, and net income.

2

Set working capital assumptions

Enter days sales outstanding (DSO), days payable outstanding (DPO), and inventory days. These drive the balance sheet working capital lines.

3

Build the balance sheet

The balance sheet populates from the P&L and working capital assumptions. Add fixed assets, debt, and equity lines manually.

4

Generate the cash flow statement

The cash flow statement is derived automatically from changes in the P&L and balance sheet. Check that the closing cash balance matches the balance sheet.

5

Run the balancing check

Verify that Assets = Liabilities + Equity on the balance sheet. The template flags any imbalance automatically.

Watch out

Common mistakes to avoid

Breaking the circular reference between interest expense and the debt balance

Forgetting to include changes in working capital in the cash flow statement

Not reconciling the cash flow statement closing balance to the balance sheet cash line

Using inconsistent time periods across the three statements

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FAQ

Frequently asked questions