FINANCIAL FORECAST: P&L & BALANCE SHEET

Before After

Industry: Finance

Project Background: This project focuses on forecasting financial performance by analyzing historical financial data and modeling three growth scenarios.

My Task As A Financial Analyst: To build a 5-year financial forecast using historical data, develop best, base, and worst-case scenarios, and analyze key financial variances. The goal is to strengthen balance sheet positioning, enhance profitability, and support strategic financial decision-making.

Skills: Financial Analysis, Financial Statement Analysis, Financial Modelling, Forecasting, Scenario Planning, Variance Analysi.

Tools/Libraries: Excel

Analysis:

During my financial analysis course, I learned how to build forecasts from historical data—a skill I was eager to put into action. The process was both thrilling and insightful. Using what I learned, I transformed raw financials (“Before”) into a structured 5-year forecast (“After”)—a model shaped by scenario planning and grounded in data analysis.

I crafted three distinct scenarios—best case, base case, and worst case—each highlighting key financial variances:

  • Best Case: Revenue grows by 3%, driving parallel increases in COGS, operating expenses, gross profit, and net profit. Asset growth is strong, especially in cash. Liabilities and equity also increase, reflecting expansion and reinvestment.
  • Base Case: Revenue rises by 2%, with proportional increases across COGS and expenses. Profitability improves steadily. Assets and liabilities continue to grow, indicating a stable financial position.
  • Worst Case: Even with just 1% revenue growth, there’s movement across all key areas. COGS and expenses still rise, but gross and net profit fluctuate. Asset growth continues, though liabilities climb as well.

Across all scenarios, I applied my analytical skills to break down variances, evaluate financial health, and explore implications. The refined Balance Sheet shows stronger asset positioning, improved equity, and better cash flow management.

This exercise wasn’t just about numbers—it was about telling a story with them. It helped me understand how forecasting supports smarter decisions, and it gave me a hands-on experience in turning data into strategy.

My first financial project was just the beginning—and I’m excited to keep building on everything I’ve learned. Each experience has deepened my understanding, and I’m eager to apply this knowledge to future projects, continuing to grow and refine my skills in the process.