Gain insights into the learning paths related to web development, from start to finish. Discover the specific classes, career options, and essential tools for front end, back end, and full stack web development.
Key Insights
- The journey to becoming a web developer often begins with learning HTML, CSS, and JavaScript for front end development.
- Back end development involves server-side programming languages such as Python, Java, and Ruby.
- Full Stack developers are proficient in both front end and back end development, handling everything from user interface to databases.
- SQL is necessary for managing databases and is a critical skill for full stack developers.
- There are several career options available in the field beyond web development, such as UX/UI design, project management, and data science.
- Continual learning and staying updated with the latest tools and languages is crucial to staying competitive in the field.
Video Transcription:
Full Video Transcript
So we just completed all line items for historical years for income statement, balance sheet, and cash flow statement. Now we're gonna calculate our value drivers for historical years so we can make assumptions for projected years and based on that fill up our three statements.
The line items we picked here are: revenue growth, interest as a percentage of debt beginning balance, depreciation and amortization as property plant and equipment opening balance, COGS as a percentage of revenue, selling general and administrative expenses as a percentage of revenue, research and development as a percentage of revenue, and tax rate. For balance sheet, we will calculate days receivable, days inventory, days payable, capital expenditures, debt issuance repayment, dividends to common stockholders, and equity issued repaid.
Revenue Growth and Interest Calculations
Let's start with the revenue growth here. I remember I have my revenue in the income statement in the very beginning of the model in row four, so I'm gonna take current year revenue divided by my previous year revenue minus one to calculate the revenue growth for 2017.
My interest as a percentage of debt beginning balance—I'm gonna find my interest in income statement as well, it's row 11, and I'm gonna divide it by debt beginning balance which is in balance sheet. Beginning balance is always equal to the ending balance, and we remember that in the balance sheet we have ending balance for the year. So ending balance for 2016 will be the beginning balance for 2017. That's why I grabbed the cell E28 here.
Depreciation and Operating Expense Ratios
Depreciation and amortization as a percentage of PP&E opening balance—I'm going to grab my depreciation and amortization again in the income statement, row 10, and divide it by PP&E which is in my balance sheet. Again, since I'm considering opening balance here, it's going to be my closing balance for the previous year. Great job, these three value drivers are calculated correctly. I am filling them to the right for all historical years.
Move to my COGS as a percentage of revenue—both line items are located in my income statement. COGS divided by revenue. SG&A as a percentage of revenue, same idea. I'm going to find those line items in the income statement. My SG&A is in row 8 and revenue is in the row, and I want to anchor the cell E4 for row 4 with F4 function for shortcut for anchoring. I just did it.
I do it because the next line item for assumptions will be R&D divided by revenue, and R&D is the next line item here. So enter, and I can fill the formula—shift down arrow, Ctrl+D—down because I anchored the revenue and it flew down, and my R&D flew down as well. Beautiful.
Tax Rate and Balance Sheet Value Drivers
Tax rate—to calculate tax rate, again I'm gonna go to my income statement and I will find line items such as provision for income taxes, and I'm gonna divide it by income before income taxes. Perfect, all value drivers are correct here. I'm gonna fill them all the way to the right for historical years.
Now let's get to the balance sheet value drivers. My days receivables formula will be my accounts receivables in my balance sheet. I'm going to find it in row 21, divided by revenue in my income statement, and multiplied by 365 days a year. Formulas for days receivable, days inventory, and days payable were discussed in the video on working capital in the financial accounting section.
Working Capital and Cash Flow Metrics
Let's go ahead and calculate days inventory—same logic. I'm going to find my inventory in the balance sheet in row 22, divided by my COGS in the income statement, and multiply it by 365. And my days payable—I'm going to take my accounts payable from the balance sheet, row 27, divided by COGS, and multiply by 365. Amazing, I'm gonna fill all these formulas to the right for historical years and move to the next value drivers.
My capital expenditures are given to me in the cash flow. However, it's my cash outflow here so it's negative. In my value drivers, I want to see all values as positive, so I'm going to reverse the sign by putting a minus sign in front of it. Debt issuance repayment is in line 51. Dividends to common stockholders and issuance repayment of equity goes in the following line. So all I need to do here is shift down arrow twice, Ctrl+D to fill down, and now I'm going to fill all these cells to the right to all historical years.
Great job! We just completed step number three, historical value drivers calculations. In the following step, step number four, we will make assumptions for the value drivers here.
