Advanced financial modelling

Advanced financial modelling
10-12-2018
Training

London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS

A detailed insight into advanced financial modelling

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Course Overview

 

This one day course will provide participants with a detailed insight into the world of advanced excel for financial modelling. By the end of this course, participants will be able to:

  • Know the different types of financial models and when each should be applied
  • Be able to design financial models
  • Be able to develop models for their own use, incorporating elements such as risk, sensitivity, optimisation and forecasting

 

Why Attend?

 

This workshop is practical and with a modular approach in structure, will allow participants to build their knowledge in stages. Further, at the end of the course numerous models will be provided to participants which will cover a range of industry sectors and financial model types.

 

Who Should Attend?

 

This two- day course has been designed to appeal to the following professionals:

  • Investor Relations professionals
  • Finance Directors/Managers
  • Accountants
  • New joiners in the following functions:
    - Corporate Finance
    - M&A Advisory
    - Equity Analysis
  • Portfolio Managers
  • Financial Analysts

 

CPD points: This programme attracts 6 CPD points. 

 

Course tutor
Our trainer is a consulting trainer as well as a corporate finance practitioner. He has delivered courses for banks around the world in the areas of Credit, Corporate Finance, Valuation and Financial Modelling. He qualified as a Chartered Accountant, completing articles with PricewaterhouseCoopers. He started his career with a subsidiary of Commercial Union, involved in the steel manufacturing industry. His experience ranged from systems implementation, credit assessment of the highly risky construction industry customers, heading up the finance functions to successfully turning the business around and then selling the company through a trade sale. He later joined Commercial Union in the investment back-office function, reengineering the investment back office and later headed-up a team who implemented a new investment management system for both the back office and the front office. His career then spanned over 15 years in the Venture Capital and Private Equity arena, where he has gained a vast amount of experience in the corporate analysis and valuation field.
10 Paternoster Square
London
EC4M 7LS
United Kingdom

Course Content

 

Session 1 - Concepts, Methodology and Requirements

Objective: This opening session introduces the concepts and methodologies used in financial modelling and financial functions form the core to a large part of financial modelling.

  • Model  functions
  • Naming cells
  • Dates and timing conventions
  • Logical functions
  • Short cut keys
  • Graphs
  • Financial Functions:
    • Time value of money
    • Using advanced formulae and the fx functions
    • Practical statistical tools

 

Session 2 - Income Statement: Revenue

Objective: This section introduces the design and modelling of the income statement. Assumptions form a crucial part in the development of models, together with the multi-variable scenario analysis.

  • Revenue analysis
  • Projecting data:
  • ‘Detailed’ versus ‘top level’ analysis
  • How to build growth into the model
  • Compound annual growth rate (CAGR)
  • External factors and revenue drivers
  • Multi variable Scenario analysis

 

Session 3 - Balance Sheet: Assets and Liabilities

Objective: Participants will develop the asset side of the balance sheet with a focus on capital expenditure models and debtor and inventory management. The liability side will include complex debt amortisation and taxation with deferred taxation computations

  • Capital structure
  • Non-current assets and deprecation tools and techniques
  • Capital expenditure models
  • Current assets
  • Debt and amortization tables
  • Current liabilities

 

Session 4 - Cash Flow Statement

Objective: Participants will develop the cash flow statement and cash flow forecasts from the link between the balance sheet and income statement.

  • Link between balance sheet and income statement
  • Working capital projections
  • Cash flow forecasts
  • Analysis models and their uses in treasury management

 

Session 5 - Integration of Ratio Analysis

Objective: Ratios provide a measure of checking and verifying the numbers projected in the income statement and balance sheet

  • Profitability, liquidity, efficiency and gearing ratios
  • Du Pont analysis
  • The importance of ROI
  • Market related ratios and benchmarking
  • Testing the model results

 

Session 6 - Investment Appraisal Models

Objective: Participants will now apply the tools learnt earlier in the investment and project appraisal

  • Payback and discounted payback
  • Accounting rate of return
  • Net present value
  • Profitability Index
  • Internal rate of return

 

Session 7 - Advanced Techniques

Objective: Advanced techniques focus on the application of useful excel tools used to identify and control key sensitivities through spreadsheet simulation

  • Data base techniques
  • Goal seek
  • Optimization
  • Scenario analysis
  • Audit requirements in financial modelling
  • Identifying and controlling key sensitivities through spreadsheet simulation
  • Building risk factors in models to enhance decision making

 

Session 8 - Sensitivity Analysis

Objective: In this session participants will develop an understanding of the concepts of sensitivity in project finance models. This will help assessing accuracy of the model as well as worse case and best case scenarios

  • Purpose of sensitivity analysis
  • Establishing a suite of sensitivities
  • Combined downside 'worst' case
  • Minimising run-time errors
  • Identifying sensitivity printout
  • Automating sensitivity runs using an input table
  • Cross checking against base case

 

Session 9 – Summary and close

 

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