Introduction to Financial Modeling
Course Delivery: Virtual or Classroom
- Virtual - London: 14 Oct 2024
- Classroom - Dubai: 8 Dec 2024
- Virtual - New York/Singapore: 9 Dec 2024
- Classroom - London: 9 Dec 2024
Course Objectives
This one-day course practically applies Excel within a financial framework to explore how forecast financial models can be efficiently created and modified. The efficient use of Excel is vital, so we begin the course by ensuring participants have the knowledge and skills required to quickly and accurately harness Excel’s tools and functionality. We then apply these skills to the best practice modeling guidelines to build and flex the structure and modules of a forecast 3-statement model.
Key Learning Outcomes:
- Demonstrate fast, efficient and accurate Excel skills
- Design and construct functional and robust financial modeling applications
- Apply efficient financial forecasting modeling techniques
- Create a basic 3-statement financial model
Who Should Attend
Professionals in corporates and financial institutions need to create useful and robust financial models. Attendees should be able to use the basic facilities of Microsoft Excel and have basic accounting knowledge. This course is the perfect foundation for our Best Practice Financial Modeling (Intermediate) course.
Certificate Option
This course can also be taken alongside Best Practice Financial Modeling to form theCertificate in Financial Modeling.
Day One
Excel Skills for Modeling
Excel can be used like a calculator. This session converts participants to using Excel in best practice modeling methods to create repeatable, consistent, flexible, and robust formulae and structures.
- Excel set-up for financial modeling
- Effective use of keyboard shortcuts
- Dynamic referencing
- Formatting data professionally
- Style basics
Introduction to Modeling
What are the key attributes of a model? Starting a model design focused on the required outputs will allow us to work backward to understand the modules needed to get to this point. However, the structure must allow flex – because things change.
- Effective construction of a model
- Objective and structure
- Initial preparation
3-Statement Model
Learn how to construct a complete 3-statement financial model.
Income statement
- Revenue
- Cost of sales, distribution costs, and administrative costs
- Interest expense
- Taxation
Balance sheet
- Property, plant, and equipment:
- Capex
- Depreciation
- Capex/deprecation
- Working capital:
- Inventories
- Trade receiveables
- Other receivables
- Trade payables
- Equity and retained income
- Equity and share premium
Cash flow statement
- Creating a cash flow statement using the indirect method
- Operating, investing, and financing items
- Modeling net cash flow and ending cash balance
