Introduction:
The development of powerful and sensible business/financial models is a basic tool in today’s value-driven organisation. As shareholders are progressively worried about the value of their investments, organisations are constantly driven to ensure the optimum use of resources. Using Excel®, the Business & Financial Modelling process gives an effective tool with which the potential results of various strategic and tactical initiatives can be projected. The ability to answer the question “What are the potential outcomes?” is key and critical.
Here is your chance to sharpen your analytical abilities for more productive decision making. This comprehensive five-day course takes you through the modelling process from start to finish. It provides practical examples and applications of modelling for both strategic and tactical administrators.
Objectives:
– Comprehend the significance of legitimate formulation and interpretation of models.
– Apply statistical tools such as Exponential Smoothing, Regression, and Seasonality.
– Make an interpretation of specific business challenges into logically structured mathematical models.
– Take full advantage of your software investment by creating more powerful models in less time.
– Figure out how to use Excel® tools such as Solver, Goal Seeker, Scenario, and Spreadsheet Auditor.
– Analyse time series data and develop relationships using exponential smoothing and regression analysis techniques.
– Draw more reasonable conclusions from the results of your models.
– Be able to determine product mix to enhance profits.
Course Outline
Day 1
Introduction and overview of Financial Modelling
Module 1 – Introduction and overview of Financial Modelling
– Characterise the Terms Model and Financial Model.
– Learn the 10 steps to create good Financial Models.
– The 12 steps to Improving traditional Financial Models.
– Use Flowcharting Techniques to improve your model.
Module 2 – 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 2
Module 3 – 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.
Module 4 – 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 3
Module 5 – Financial Ratio Analysis Models
– Identify Major Financial Ratios.
– Use Financial Ratios to Measure a company’s Financial Performance.
– Use “Peer Group” Analysis to Measure a company’s Financial Performance.
– Use Financial Ratios Models to Analyse a company’s Performance.
Module 6 – Models for Valuation of Stock and Bonds
– Learn How to Apply Dividend Discount Techniques.
– Calculate the “Intrinsic” Value of a Firm’s Common Stock.
– Rationalise 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 4
Comprehensive Models and Tools
Module 7 – Comprehensive Models and Tools
– Using Tools like Solver & Goal Seeker.
– 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 5
Module 8 – Putting It all Together
– Comprehend 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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