Financial Modelling Excel

Intensive - 5 Days

Course Overview

The development of effective and realistic business/financial models is a critical tool in today’s value-driven organisation. As shareholders are increasingly concerned with the value of their investments, organisations are continually driven to ensure the optimum use of resources. Using Microsoft Excel®, the Business & Financial Modelling process provides an effective tool with which the potential outcomes of various strategic and tactical initiatives can be projected.

The ability to answer the question “What are the potential results?” is key and critical. Here is your opportunity to sharpen your analytical abilities for more profitable decision making. This comprehensive five-day programme takes you through the modelling process from start to finish. It provides practical examples and applications of modelling for both strategic and tactical executives.

Who Will Benefit From The Course?

• Anyone tasked with the effective and efficient management of a decision-making process and who already has a basic understanding of Microsoft Excel®

With The Help Of This Course Delegates Will Be Able To:

• Understand the significance of proper formulation and interpretation of models
• Apply statistical tools such as Exponential Smoothing, Regression, and Seasonality
• Translate specific business challenges into logically structured mathematical models
• Get the most from your software investment by creating more powerful models in less time
• Learn how to use Excel® tools such as Solver, Goal Seeker, and Scenario
• Analyse time series data and develop relationships using exponential smoothing and regression analysis techniques
• Draw more realistic conclusions from the results of your models
• Be able to determine product mix to optimize profits
• Simulate the potential return on new capital investments
• Project the probability of processes running within budget
• Develop models to support product pricing and/or product continuance
• Design budget models for departments, divisions, processes, or other entities

Key areas to be covered in the programme and the accompanying documentation

Day One

Introduction and overview of Financial Modelling

• Define the terms model and financial model
• Learn the 10 steps to create good financial models
• Use flowcharting techniques to improve your model

Time Value Models

• Understand the time value of money
• Apply time value concepts to financial models
• Learn why the Weighted Average Cost of Capital (WACC) Is used in Capital Budgeting Models
• Use Net Present Value (NPV) and Internal Rate of Return (IRR) models in making capital expenditure decisions
• Use the built-in functions for NPV, IRR, MIRR

Day Two

Financial Analysis Models

• Use Break-Even Analysis in Financial Models
• Use Scenario Analysis in Financial Models
• Use Sensitivity Analysis in Financial Models
• Compare these approaches
• Incorporate Sensitivity Analysis and Scenario Analysis in Financial Models

Lease v Buy Analysis Models

• Learn the fundamental concepts of leasing
• Identify the different types of leasing
• Learn how to analyse leasing an asset vs. purchasing the asset
• Use Financial Models to make lease vs. buy decisions

Day Three

Financial Ratio Analysis Models

• Identify major Financial Ratios
• Use Financial Ratios to measure and analyse a firm’s Financial Performance
• Use "Peer Group" analysis to measure a firm’s Financial Performance

Models for Valuation of Stock and Bonds

• Learn how to apply dividend discount techniques
• Calculate the "intrinsic" value of a firm’s common stock
• Rationalize the difference between Intrinsic Value vs. Market Value for a firm’s common stock
• Learn how to apply bond valuation techniques
• Calculate the price and Yield to Maturity (YTM) of a bond
• Construct a model to evaluate potential bond investments

Day Four

Comprehensive Models and Tools

• Use Microsoft Excel tools like Solver & Goal Seek
• Developing a Financial Optimisation Model
• Identify the types of financial activities that can be connected in a model
• Build the pieces of a "connected" model
• Link the pieces to form a Multiple-Part Model

Day Five

Pulling it all Together

• Understand how models are created and used
• Deal with problems in the development and use of Financial Models
• Use Financial Models effectively

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