financial-analysis

Financial Analysis

Core Stack

import pandas as pd
import numpy as np
import matplotlib.pyplot as plt
import matplotlib.ticker as mticker
import openpyxl

---

CSV / Data Wrangling

Loading financial CSVs

df = pd.read_csv("data.csv", thousands=",", parse_dates=["Date"])
df.columns = df.columns.str.strip().str.lower().str.replace(" ", "_")

Common cleaning steps

df["revenue"] = pd.to_numeric(df["revenue"], errors="coerce")
df = df.dropna(subset=["revenue"])
df = df.sort_values("date").reset_index(drop=True)

Period aggregations

df["year"] = df["date"].dt.year
annual = df.groupby("year").agg({"revenue": "sum", "ebitda": "sum"})
annual["margin"] = annual["ebitda"] / annual["revenue"]

---

Financial Modeling Patterns

DCF skeleton

# Inputs
revenue_base = 100_000_000
growth_rates = [0.15, 0.12, 0.10, 0.08, 0.06]
ebitda_margin = 0.25
da_pct = 0.04
capex_pct = 0.05
nwc_pct = 0.03  # projected NWC as % of revenue; FCF uses the CHANGE in NWC
tax_rate = 0.25
wacc = 0.10
terminal_growth = 0.025
net_debt = 20_000_000
shares_out = 10_000_000

# Projections
revenues = [revenue_base * np.prod([1 + g for g in growth_rates[: i + 1]]) for i in range(5)]
ebitda = [r * ebitda_margin for r in revenues]
da = [r * da_pct for r in revenues]
ebit = [e - d for e, d in zip(ebitda, da)]
nopat = [x * (1 - tax_rate) for x in ebit]
capex = [r * capex_pct for r in revenues]
nwc = [r * nwc_pct for r in revenues]
change_nwc = [nwc[0] - revenue_base * nwc_pct] + [nwc[i] - nwc[i - 1] for i in range(1, len(nwc))]
fcf = [n + d - c - dnwc for n, d, c, dnwc in zip(nopat, da, capex, change_nwc)]

# Terminal value sanity: terminal_growth must be below WACC.
assert terminal_growth < wacc, "terminal growth must be below WACC"
terminal_value = fcf[-1] * (1 + terminal_growth) / (wacc - terminal_growth)
discount_factors = [(1 / (1 + wacc)) ** (i + 1) for i in range(5)]
enterprise_value = sum(f * d for f, d in zip(fcf, discount_factors)) + terminal_value * discount_factors[-1]
equity_value = enterprise_value - net_debt
implied_share_price = equity_value / shares_out