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Healthcare - Analysis and Modeling

Understand the business drivers, key modeling assumptions, and valuation metrics for the healthcare sector.

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23 Lessons (70m)

Show lesson playlist
  • Description & Objectives

  • 1. Healthcare Companies Overviews and Valuations | Interactive Video

  • 2. What are Healthcare Industries

    01:33
  • 3. What Makes Them Special

    02:55
  • 4. Treatment of R&D Costs

    04:43
  • 5. Forecasting Revenue

    01:48
  • 6. Forecasting Revenue Example - Part 1

    02:57
  • 7. Forecasting Revenue Example Part 2

    03:08
  • 8. Forecasting Pipeline Market Size

    03:18
  • 9. Forecasting Pipeline Revenue by Region EU Part 1

    04:54
  • 10. Forecasting Pipeline Revenue by Region EU Part 2

    02:21
  • 11. Forecasting Pipeline Revenue by Region EU Part 3

    03:12
  • 12. Forecasting Pipeline Revenue by Region EU Part 4

    03:28
  • 13. Forecasting Pipeline Revenue by Region US

    05:20
  • 14. Forecasting Pipeline Revenue - Pulling It All Together

    03:24
  • 15. Accounting for Joint Ventures

    01:12
  • 16. Taxation of Pharmaceutical Companies

    03:27
  • 17. Understanding the Financial Statements Healthcare

    02:35
  • 18. Forecasting Income Statement Revenues and Gross Profit

    03:07
  • 19. Forecasting Income Statement R&D and SG&A Expenses

    03:45
  • 20. Balance Sheet Workings

    02:34
  • 21. Populating the Balance Sheet

    03:31
  • 22. Cash Flow Statement Healthcare

    05:15
  • 23. Finishing off the Income Statement

    02:08

Prev: Quarterly Modeling Next: Telecommunications - Analysis and Modeling

Finishing off the Income Statement

  • Notes
  • Questions
  • Transcript
  • 02:08

Finishing off the income statement

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Transcript

Finally, the calculated values from further on in the model now need to be pulled back into the income statement.

The first of those is depreciation and amortization, which were calculated within the balance sheet workings on both pp and e and intangible assets.

They're both negative balances showing up as an expense.

So that is the sign that we want.

Finally, then, is the finance income and costs.

We need an if statement around these so that we can use a circular switch.

So, uh, if the name sales switch equals one, then we're gonna pick up the finance income from the cashflow tab.

That's our interest income. If not, we're gonna get zero.

Same thing for our finance costs.

So if the switch, circular switch equals one, then we're gonna pick up the finance expense from our cashflow statement.

If not zero. Just need to make sure that we turn that to be negative.

As you can see, we're getting no finance income or finance costs coming through.

But the final two things we need to change.

Firstly, turn on our iterative calculations and then also turn on our circular switch.

We should now see our finance costs and finance income populating through into the income statements.

Having got everything in our first forecast year now working for us, we can highlight the whole of the income statement and copy across for our four forecast years.

Not all of these balances are coming through yet because we need to do the same thing within our balance sheet and cash flow statements.

And Then we have our fully completed financial forecast.

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