Course Content
Mastering Discounted Cash Flow Analysis with Excel
Mastering Discounted Cash Flow Analysis with Excel
Creating Clean Income Statement Output
As your model grows in complexity, clarity becomes just as important as accuracy. That's why this chapter introduces a step often overlooked in technical modeling: clean output formatting.
While the "Income Statement Assumptions" tab contains all the raw calculations and inputs, it's not presentation-friendly. It's busy, dense, and not designed for stakeholders who simply want to understand financial performance at a glance.
The solution is a clean income statement output tab.
This tab should:
Mirror the structure of a traditional income statement;
Include only the key rows relevant for valuation and performance analysis;
Pull in data dynamically from the assumption tabs via direct cell references;
Be formatted clearly for printing or exporting to PDF.
By separating logic from presentation, you reduce the risk of errors and make the model more accessible for non-technical users. This is especially valuable when sharing your analysis with colleagues, investors, or advisors.
When building this tab:
Use consistent column widths and fonts for legibility;
Add clear row labels (e.g., "Revenue", "COGS", "EBITDA", "Net Income");
Freeze headers or use top-aligned formatting for year-over-year comparisons.
This "clean sheet" becomes your go-to reference when calculating UFCF, WACC inputs, or building visual dashboards.
By the end of this step, you'll have a tidy, reliable income statement that not only supports your model's logicβbut communicates it clearly to others.
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