Financial Modeling And Its Business Applications

Fundamentals and concepts of building a financial model from scratch using a real-word client’s work brief

What you'll learn

Understanding how the business operates and how it flows into financial modeling concepts

Understanding business & accounting cycle in business and financial modeling.

Getting Information/data needed to build a financial model with the use of an Information Request List document (using a client-based practical case study).

Building a professional model template.

Extracting and structuring of Inputs using FAST Standard.

Building the calculations and schedules.

Creating the projected financial statement (profit or loss, balance sheet, cash flow statement).

Requirements

Knowledge of Accounting, Microsoft Excel, and Finance

Description

This course adopted a practical and hand-holding approach to understanding and applying financial modeling concepts to business. The concepts covered in this course will serve as a base for building any financial model.This course has been developed using tested materials, and practical techniques used in real-world business applications. It will teach you a step-by-step guide to building a financial model for a business that has no historical data, or financial. What you will learn:Understanding how the business operates, and how it flows into financial modeling concepts.Understanding business & accounting cycle in business and financial modeling.Getting information/data needed to build a financial model with the use of an Information Request List document (using a client-based practical case study).Building a professional model template.Extracting and structuring of inputs using FAST Standard.Building the calculations and schedules.Creating the projected financial statement (profit or loss, balance sheet, cash flow statement).The prerequisite skills needed for this course are:Accounting: ability to build and interpret 3-financial statements and understand how the financial statements are linked.Finance: understanding the fundamentals of finance, understanding investment evaluation, and application of macroeconomic factors in forecasting.Microsoft Excel: application of formulas and functions in Microsoft Excel.Analytical skills: ability to analyze and interpret data.

Overview

Section 1: Welcome to the course

Lecture 1 Welcome to the Course

Lecture 2 Meet the Facilitator

Lecture 3 Watching the Course

Lecture 4 The Model Project Walk-Through

Section 2: Concepts of Financial Modeling and Business Operations

Lecture 5 Skills of a Financial Modeler

Lecture 6 Understanding Data and Component of a Model

Lecture 7 Approaches to Financial Modeling

Lecture 8 3's in Financial Modeling

Lecture 9 Financial Modeling Storyline; How it started

Lecture 10 Business & Accounting Cycle in Business

Lecture 11 Incorporating Business & Accounting Cycle in Financial Modeling

Section 3: Component of Modeling

Lecture 12 Overview of the Components of a Model

Lecture 13 Understanding Components of a Model

Lecture 14 Basic Toolkits used in Financial Modeling

Lecture 15 Absolute Forecast Formula Toolkits in Financial Modeling

Lecture 16 Negative Forecast Formula Toolkits in Financial Modeling

Section 4: Schedules In Financial Modeling

Lecture 17 Understanding BASE Schedule in Financial Modeling

Lecture 18 Understanding BCE and OWC in Financial Modeling

Lecture 19 Sample of Line Item Schedules in Financial Modeling

Lecture 20 Download the Activity File

Lecture 21 Building a BASE Schedule with an Example

Lecture 22 Building the BCE Schedule with an Example

Lecture 23 Building Operating Working Capital Schedule with an Example

Lecture 24 Kindly download the Activity File

Section 5: Structure of Financial Statement

Lecture 25 Understanding REAL Framework in Accounting

Lecture 26 Structure of Income Statement Top Line

Lecture 27 Structure of Income Statement Below Line

Lecture 28 Income Statement Drivers in Financial Modeling

Lecture 29 Structure of Balance Sheet and Its Drivers in Financial Modeling

Section 6: Creating a Professional Model Template.

Lecture 30 Planning the Model Template Structure with Microsoft Excel

Lecture 31 Setting the Model Template to a Printable Format

Lecture 32 Duplicating Worksheet in the Model Template

Lecture 33 Creating Model Style Guide

Lecture 34 Creating Cell Style Guide Sample

Lecture 35 Modifying & Editing Cell Style Guide

Lecture 36 Setting up the Table of Content

Lecture 37 Finalizing the Menu Information

Lecture 38 Creating the Model Template Cover Page

Lecture 39 Layout of the Worksheet Headings

Lecture 40 Yearly Worksheet Sample Layout

Lecture 41 Monthly Worksheet Sample Layout and Duplicating Worksheet

Lecture 42 Creating Hyperlinks to the Table of Content

Lecture 43 Color Coding the Worksheet

Section 7: Getting Assumptions in Financial Modeling

Lecture 44 Overview of a Client's Brief

Lecture 45 Layout of the Information Request List

Lecture 46 Listing the Required Information (part 1)

Lecture 47 Listing the Required Information (part 2)

Lecture 48 Listing the Required Information (part 3)

Lecture 49 Listing the Required Information (part 4)

Section 8: Extraction Assumptions for the Model Build

Lecture 50 Download the Activity File

Lecture 51 Reading through a Client Workbrief

Lecture 52 Extracting the General Assumptions

Lecture 53 Extracting the Inflation Factor

Lecture 54 Extracting other macroeconomic assumptions

Lecture 55 Extracting the Funding Assumptions

Lecture 56 Extracting the Cost of Funding Assumptions

Lecture 57 Extracting the Use of Funds Assumptions

Lecture 58 Extracting the Pricing & Unit Cost Assumptions

Lecture 59 Extracting the Quantity Assumptions

Lecture 60 Extracting the Personnel Assumptions

Lecture 61 Extracting the Operating Cost Assumptions

Lecture 62 Extracting the OWC Assumptions

Lecture 63 Creating Group Outline

Lecture 64 Download the Activity File

Section 9: Calculations Schedule

Lecture 65 Calculating Cost Incremental Factor

Lecture 66 Calculating Pricing Incremental Factor

Lecture 67 Building the Equity Schedule

Lecture 68 Building the Debt Schedule

Lecture 69 Use of Funds Classification

Lecture 70 Starting with the Assets Schedule

Lecture 71 Building the Asset Schedule

Lecture 72 Building the Watefull Asset Depreciation

Lecture 73 Building the Revenue Calculation

Lecture 74 Building the Cost of Sales Calculation

Lecture 75 Building the Salary Schedule

Lecture 76 Building the Opex Calculation

Lecture 77 Building the OWC Schedule

Lecture 78 Download Activity File

Section 10: Building the Projected Financial Statement

Lecture 79 Building the Income Statement Top Line Item

Lecture 80 Building the Income Statement Operating Profit

Lecture 81 Building the Income statement Net Profit

Lecture 82 Download the Activity File (Income Statement)

Lecture 83 Building the Balance Sheet Assets

Lecture 84 Building the Balance Sheet Liabilities and Equity

Lecture 85 Download the Activity File (Balance Sheet)

Lecture 86 Building the Cashflow

Lecture 87 Building the Cashflow Schedule

Lecture 88 Download the Activity File (Complete Model)

Section 11: End of the Session

Lecture 89 Capstone Project

Financial Modelers, Finance Analyst, Investment Analyst, Valuation Analyst, and Financial Adviser