Course description
Financial Modeling - Fundamentals Part 1
This session teaches participants how to build a three statement integrated financial model, comprising income statement, balance sheet and cash flow statement. Best-practice modelling techniques are demonstrated, to ensure maximum accuracy and efficiency. Participants also learn how to stress-test the assumptions used, to check the model for mistakes and to document it. This session uses simplified teaching models as well as a real company forecast model.
Financial Modeling - Fundamentals Part 2
Using a real company forecast model, we start the session by reviewing the structure and key components of an integrated three statement forecast model. We then focus on modeling operating cash (required cash) and separating it from excess cash. We then teach participants how to build a forecast cash flow statement from scratch, using income statement and balance sheet inputs. The last part of this session focuses on interest calculations and circularities, where we teach participants the difference between using beginning, ending or average debt/cash balances and how to work safely and effectively with or without circular formulae in a model.
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Upcoming start dates
Suitability - Who should attend?
- New hires who have joined the firm late and missed the in-house program
- Individuals looking to fill a knowledge gap
- Experienced bankers looking to refresh their technical skills
- Teams employed in financial strategy roles from non-banking corporations
- Graduates preparing to interview for a role in the finance sector
- Students at business school and looking for a career in finance
Outcome / Qualification etc.
Fundamentals Part 1 Learning Outcomes
- Setting Excel up for maximum efficiency
- Best-practice keyboard shortcuts for modelling
- Key modeling formulas
- Alternative model layouts
- Structure of an integrated three statement forecast model
- Constructing the income statement, balance sheet and cash flow statement
- Balancing the forecast balance sheet using cash and revolver
- Incorporating interest income and expense
- Introduction to checking methodologies
- Performing audit trails
Fundamentals Part 2 Learning Outcomes
- Review of the structure and key components of a forecast model
- Review of the modelling steps to build a three statement integrated model
- Modeling operating cash (require cash) and excess cash
- Building a forecast cash flow statement from scratch
- Calculating interest on cash and debt balances
- What is a circular formula?
- Working with intentional circular references
- Avoiding non-intentional circular references
Reviews
Average rating 4.8
They were a fantastic instructor. They were extremely knowledgeable and taught us the concepts very well.
Really enjoyed doing the model alongside the demonstration today, felt I got a good understanding.
Fantastic overview of the basics of financial modeling.