> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/help/stock-ticker-fundamentals/how-variables-are-created.md).

# How Variables Are Created

This article explains how Model Reef turns imported ticker fundamentals into **variables**, so that you immediately have a working three statement model for a listed company.

You will learn:

* How a dedicated branch is created for the ticker.
* How variables are auto generated from the imported series.
* How those variables are named, typed and categorised.
* How to build on top of them with forecasts and scenarios.

## Creating the company branch

When you import fundamentals for a ticker into a model, Model Reef:

* Creates a **branch** for the company if one does not exist.
* Names it based on the company and ticker, for example `Apple Inc (AAPL)`.
* Uses this branch as the container for all variables representing that company.

If you already have a branch for the company, you can map the import to that existing branch instead of creating a new one.

## Auto generating variables from fundamentals

For each imported series, Model Reef auto generates a **variable** in the company branch. For example:

* Revenue series -> Revenue variable.
* Direct costs series -> COGS variable.
* Operating expense series -> Opex variables.
* Asset and liability series -> Asset and Liability variables.
* Cashflow components -> variables that drive operating, investing and financing cashflows.

Each variable is linked to the underlying Data Library series that holds the historical values.

This means you have a ready made variable set that matches the imported statements with no manual construction.

## How variable settings are chosen

For each auto-created variable, Model Reef sets:

* Name
  * Derived from the original line description, cleaned for readability.
  * You can rename any variable without breaking its history.
* Variable type
  * Chosen based on the nature of the line: Revenue, COGS, Opex, Staff, Asset, Liability, Equity, Tax, Dividend.
  * Controls how the variable impacts P\&L, Balance Sheet and Cashflow.
* Category and subcategory
  * Assigned to sensible defaults that mirror standard financial statements.
  * Can be refined to match your internal reporting structure.
* Branch
  * Set to the company branch created for this ticker.
* Units and frequency
  * Based on the imported data (for example annual currency values).
  * Aligned with the model's base granularity at runtime.

## Immediate outputs after variable creation

As soon as variables are created, Model Reef can:

* Render **historical P\&L** using the revenue and expense variables.
* Render a **historical Balance Sheet** using asset, liability and equity variables.
* Render a **historical Cashflow Statement** and **Cashflow Waterfall** using the cashflow related variables.
* Show **historical dashboards and charts** for revenue, margins, cash and other KPIs.

No extra setup is required to see the historical picture.

## Building forecasts on top of ticker variables

Once variables exist, you can:

* Add forecast **drivers** (growth, margins, operating metrics) for forward periods.
* Use **preset formulas** such as recurring, scheduled or ML based trends.
* Adjust **timing settings** for how accruals translate into cash.
* Create **scenarios** by duplicating the model and changing forward assumptions.

The imported fundamentals give you the history and structure. Your modelling work focuses on the future.

## Related articles

* [Funding & Drawdown Structures](/use-cases/capital-projects-and-infrastructure/funding-and-drawdown-structures.md)
* [Build a Machine Readable Model for Automation](/how-tos/data-workflows-and-automation/build-a-machine-readable-model-for-automation.md)
* [COGS Variables: what is, rules, what it affects](/help/drivers-variables-and-timing/cogs-variables.md)
* [Linking Drivers to Variables](/syntax/drivers-syntax/linking-drivers-to-variables.md)