Financial Modeling in Excel

In this 3 day course you will learn how to construct different financial models and analyze their applications and uses: Understand the different types of financial models and when each should be applied Construct financial models making use of a broad range of Excel methods and techniques Incorporate elements such as risk, sensitivity, optimization and forecasting into financial models Produce meaningful management reports and charts for communication Who Should Attend? Head of Training Head of Accounts Head of Project Finance Head of Corporate Finance Head of Structured Finance
DAY 1 Introduction and Overview Overview of the course Scope of modelling Objectives of modelling Different models by application Useful Excel features Listing of modelling techniques Exercise: Model review Building a Model 1: Model design and structure – key steps Exercise: Defining a Model Plan Model objective Flowchart and information flow Defining outputs Defining inputs and variables Setting up modules Menu structure Help Documentation Example: Financial Analysis Model Building a Model 2: Testing and Auditing a Model Example: Testing a Financial Analysis Model with Cash Flows and Ratios Exercise: Debugging a Financial Model Practical – Investment Analysis 1 Practical Investment Model Exercise DAY 2 Risk Scenarios and Simulation Forecasting Models Review of forecasting methods Macro forecasting Linear methods Smoothing techniques Seasonal forecasts Multiple regression Example: Adding a Forecast to Financial Analysis Model Risk Techniques Understanding of risk Sensitivity table Scenario analysis Dynamic what-if Standard deviation and coefficient of variation Certainty equivalents Example: Adding Risk Techniques to a Financial Analysis/Valuation Model Risk and Simulation Building a simulation model Monte Carlo simulations Example: Financial Analysis Model Practical – Investment Analysis 2 Adding Sensitivity to the Investment Model DAY 3 Optimization and Reporting Optimization and Targeting Overview of optimisation and targeting Goal seek method Optimization using Solver Linear programming Example: Financial Analysis/Valuation Practical – Investment Analysis 3 Extend the Investment Model and Calculate Optimum Net Present Value Management Reporting Management summary Reporting Consolidations Summary and pivot tables Example: Monthly Management Model Example: Consolidation Model Practical - Management Reporting and Forecasting Analysis of Company Financial Data Exercise: Produce a Management Summary Report with Charts