Description
OBJECTIVES
By the end of the workshop delegates will:
- gain a good working knowledge of the most useful functions in Excel for financial modelling
- have understanding of different types of financial models and when to apply them
- be able to construct financial models using a broad range of Excel method and techniques
- have experience in designing solutions to real-world financial modelling challenges
- be able to produce meaningful management reports and charts
Pre-requisite KnowledgeDelegates will be expected to have basic finance knowledge and a basic knowledge of EXCEL, including:
- Opening and closing Excel files
- Excel screen menu and standard toolbar
- Creating a file
- Deleting files and individual worksheets
- Moving around a worksheet and between worksheets in a workbook
- Changing column width, fonts sizes and colours
- Centring titles and merging cells
- Saving, closing & retrieving the worksheet
- Entering simple formulae
- Auto fill
- Cell referencing
- Number formats
- Copy, cut and pasting cell contents
- Inserting graphic objects
- Previewing worksheet
- Printing documents and ranges
Please note that the delegates should bring along their own laptops when attending this programme.
PROGRAMME DETAILS
DAY ONE
Introduction to Financial Modelling
- What is a model?
- Spreadsheet models
- Types of models
Principles of Financial Modelling
- Steps in model building
- Best practice guidelines and spreadsheet modelling standards
- Designing for flexibility and scalability
- Designing for consistency
- Designing for usability and functionality
- Designing checks and balances
- Using VBA in financial models
- Examples
DAY TWO
Principles of Risk Return
- Volatility
- Capital Structures
- Weighted Average Cost of Capital (WACC)
- Cost of Equity Capital
Valuation:
Theory and Application
- Role of valuation
- Approaches to valuation
- Accounting concepts behind balance sheet, income statement and cash flow
- Analysing past performance
- Discounted cash flow modeling
- Adding Risk Techniques to financial analyst/valuation model
- Sensitivity analysis and an introduction to Monte Carlo Simulations
- Interpreting results
- Examples
DAY THREE
Financial Model Auditing/Review
- Why is Audit?
- Excel’s auditing tools
- Automated testing tools: role, purpose and limitations
- Model documentation
- Overview, purpose, advantages, disadvantages
- Demonstration
DAY FOUR
Reporting
- Management Reporting and Forecasting
- Reporting
- Consolidations
- Analysis of company financial data
- Examples
- Exercise: Produce a management summary report with charts
