Financial Modelling
Course Overview:
This comprehensive course is designed to provide participants with the skills and knowledge needed to create financial models for decision-making and forecasting. Through a combination of theory and practical exercises, you will learn how to build robust financial models that can be applied to various industries and scenarios.
Course Objectives:
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To provide participants with a solid foundation in financial modelling principles and techniques -
To enable participants to create accurate financial models for various business scenarios. -
To equip participants with the skills to perform financial analysis and decision-making. -
Use advanced Excel skills to develop financial analytics dashboards and reports to drive business insights. -
Make your analysis more powerful and dynamic. -
Build models with different styles and layouts. -
Follow industry-best practices. -
Learn the fundamentals of business valuation -
Learn how to use ChatGPT to speed up financial planning and analysis
Module 1: Introduction to Financial Modelling
- Understanding the role of financial modelling in decision-making
- Model Planning
- Incorporate good modelling practices
- Key concepts and terminology in financial modelling
- Excel basics for financial modelling
- Design and presentation
- Tab Structure
Module 2: Advanced Excel functions for Financial Modelling
- Recap of essential Excel functions (SUMIF, IF, VLOOKUP, XLOOKUP, IFERROR, IFNA, etc.)
- Array formulas for efficient data manipulation
- CHOOSE Function
- Combination of Text (Concatenate and ampersand)
- IINDEX and LEFT
- INDEX and MATCH functions
- Using OFFSET and INDIRECT for dynamic referencing
- Data Table
- Dynamic Dates
- Conditional Formatting
- Logical Functions
- Advanced data validation techniques
- Goal Seek and Solver for optimization problems (Calculate Break-even or Target Output)
Module 3: Accounting Fundamentals
- Structure of financial statements
- Understanding income statement
- Understanding statement of financial position
- Understanding the cash flow statement
- Relationship between the components of the financial statement
- Understanding of business activities
Module 4: Financial Statement Analysis
- Introduction to Financial Analysis
- Classification of ratios: liquidity, profitability, solvency, and efficiency
- Trend analysis and historical comparison
- Limitations of Ratio Analysis
- Case Studies and Practical Applications
- Using ratios for financial forecasting
- Speed-up your financial analysis using ChatGPT
- Know how to give advanced instructions to ChatGPT
Module 5: Constructing the Three-Statements Financial Model
- Inputs and Assumptions (Forecasting revenue, expenses, and working capital, capital expenditures)
- Dynamic Amortization Schedule
- Schedules Assumption
- Equity Schedule
- Income Statements
- Balance Sheets/Statement of Financial Position
- Cash Flow Statements
- Charts and Graphs
- Using AI forecasting tools in Excel
Module 6: Incorporating Risk in Financial Models
- Identifying and quantifying risks in financial models
- Sensitivity testing (Data table and Goal Seek) and other methods
- Scenario analysis (CHOOSE function or Index & LEFT)
Module 7: Project Evaluation
- Building a business case for investment decisions
- Evaluating investment opportunities (NPV, IRR, payback period)
- Capital investment models
- Understanding discounted cashflow and net present value (NPV)
- Identifying relevant incremental cashflows
- Using Excel functions to calculate NPV
- Understanding internal rate of return (IRR)
- Using Excel to calculate IRR
- Understanding internal rate of return (IRR)
- Using Excel to calculate payback period
- Decision-making criteria and investment recommendations