Do You Need to Attend This Course?
This financial modelling course is a ‘must know’ for:
Financial analysts with limited experience in using Excel to forecast the financial performance and position of a company, and building scenarios
Finance professionals who are seeking to improve their skills in calculating and interpreting key performance indicators of a company
Financial analysts who are seeking to develop their skills in checking the accuracy and integrity of financial models and performing sensitivity analysis
Technical Content
Session 1 – Modelling Fundamentals
Optimal Excel Settings & Shortcuts
Types of models: matrix vs. tower, threaded vs. grouped assumptions
Presentation formats, including positive vs. negative conventions
Types of assumptions: growth, relative and absolute
Session 2 – Building an Integrated 3-Statement Forecast
Income statement presentation (sales, cash vs. non-cash expenses, EBIT vs. EBITDA, interest, tax and net income)
Taxation: Marginal vs. Effective tax rates
Dividends: growth rate vs. payout ratio
Movement in PP&E
Modelling operating working capital
Balancing a balance sheet through the cash flow statement
Calculation of interest expense and interest income: opening vs. average balance method
Managing circularities in Excel: circular switches
Building Scenarios using CHOOSE, INDEX, OFFSET, MATCH and XLOOKUP
Building Sensitivity analysis using one and two-sided data tables
3 statement model course section: during the day, we will build two simple generic integrated 3-statement models and a 3-statement model for a public company using research consensus forecasts
Session 3 – Integrity and Error Checking
Sense Checking techniques
Checking formulae for column consistency
Stress testing
Case studies: reviewing models containing errors and applying techniques on how to identify and correct them
Session 4 – Cash Flow Statement Presentations
Different approaches to presenting the cash flow
Direct vs. indirect method
Unlevered free cash flow and cash flow to equity investors
Cash flow statements for leveraged businesses: EBITDA, Cash Flow available for Debt Service and Cash Flow available for Debt Repayments
Course Conclusion and Wrap-Up
Please note - a longer two-day version of this course is also available as an in-house option.
Training Objectives
By the end of this course, participants will be able to:
Apply optimal settings and shortcuts to improve modelling efficiency
Building an integrated business and cash flow forecasting model is included in this 3-statement model course, including: The three main statements
Secondary detailed areas of analysis
Understand the key forecasting and modelling issues for any business modelling situation, which successful financial modelling courses should always cover
Training Course Summary
The core of this course is the building of fully integrated income statements, balance sheets and cash flow statements, with attention also paid to inputs such as working capital requirements, capex, depreciation and debt capacity.
Your trainer
Course Trainer · 10 yrs experience
- Financial Modelling Courses
After graduating from Cambridge University in 1993, this course trainer worked as an auditor with Arthur Andersen, gaining a comprehensive knowledge of corporate accounting and financial statements. He qualified as a chartered accountant (ACA) and then worked in investment banking in the City of London, initially with HSBC and subsequently at Merrill Lynch. Throughout his time in the city, he held a front-office role, advising companies on several areas, including valuation, financing, acquisitions, foreign exchange, and derivatives. This breadth of practical experience and his passion for sharing and communicating knowledge naturally led him towards a career in financial training and an expert in delivering training courses.
He has worked in financial training for the last ten years and delivered training courses on accounting, financial modelling, corporate finance, valuation and capital markets at investment banks, private equity and corporate finance firms throughout the world.
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