Three-Statement Financial Models, built on the Leontief Method
The Modeling FrameworkEvery model Simion Advisory ships is built on the Input-Output framework developed by Dr. Wassily Leontief - the structural approach that won the 1973 Nobel Prize in Economics. Here's what that means in practice, and why it produces forecasts that hold up under investor scrutiny.
About Dr. Wassily Leontief
Wassily Leontief (1905–1999) was a Russian-born American economist who revolutionized the field of Economics by creating Input-Output analysis, a method of mapping the complex interdependencies within an economy. His work was so foundational that he was awarded the 1973 Nobel Prize in Economics.
But his influence didn't stop there. Leontief was a master mentor; four of his doctoral students also went on to win the Nobel Prize, proving that his rigorous approach to structural data is the gold standard for understanding complex systems.
From Economic Theory to Business Strategy
Leontief applied his logic to nations. Simion Advisory applies it to a single business. The "Input-Output" concept becomes the engine behind a robust three-statement model: every operational driver in, three linked financial statements out, the entire ecosystem updating in real time when any assumption moves.
- InputsSTEP 01
Every operational driver is captured as a structured input.
- EngineSTEP 02
A linked three-statement engine propagates the math.
- OutputsSTEP 03
P&L, Balance Sheet, and Cash Flow update in real-time.
Every operational driver (Input) is mathematically linked to P&L, Balance Sheet, and Cash Flow (Output). If one lever moves, the entire ecosystem updates in real-time.
The models are dynamic, designed for advanced scenario testing. Variables are categorized by sensitivity (High, Medium, Low), letting you run "what-if" simulations that prepare the business for any market condition.
Mathematical complexity is distilled into clear, executive-level visuals that make decision-making effortless for boards and investors.
The Input-Output diagram, applied to your business
Drivers on the left feed the calculation engine in the middle. The engine pushes a linked set of financial outputs on the right - every output traceable back to a driver, every driver testable under scenario.
Input Drivers
Scenario-Specific Parameters
Financial Outputs
Income Statement
P&L Dynamics
Balance Sheet
Asset/Liab Mapping
Cash Flow
Liquidity Forecasts
Distribution Waterfall
Investor Payouts
Scenario Testing
What-If Analysis
Free Model Audit
See it on your own modelSend Gabriel your existing model. He'll review the structure, assumptions, and outputs against the Leontief Input-Output framework - and reply with the three changes that matter most.
Ready to commission a model on this framework?
Pricing and engagement options live on the Financial Modeling services page. Greenfield to Series A, simple to complex - transparent fixed-price packages.
See Financial Modeling pricing