Financial Analysis, Modeling & Forecasting
Course Schedule
Financial Analysis, Modeling & Forecasting
A thorough grasp of the principles of financial analysis is a key competency needed for effective management of a business. This 5-day interactive course goes far beyond the typical financial analysis program. It uses both the principles of analysis and the power of Excel® to identify the strategic drivers that can dramatically enhance the shareholder value of your organization. Using Excel®, delegates will:
- Develop the basics of strategic financial planning
- Apply the latest financial analysis techniques
- Use the tools of finance, such as the time value of money
- Determine key performance indicators in order to manage the drivers of business success
- Create tools to use within their own business
On completion of this course, delegates will be able to:
- Identify the key steps in developing a financial model
- Analyse a company’s annual report identifying key performance indicators in order to understand what the numbers are really saying and make projections of future performance
- Understand the theory of interest and the time value of money and their applications
- Develop an Economic Value-Added model to see the organization from the shareholders’ perspective
- Project the benefit of Capital Investment
- Learn how to use Excel® tools such as Solver, Goal Seeker, and Scenario
- Develop an improved understanding of financial drivers
- Recognise the necessity of return on investment as an imperative for the company by which they are employed
- Improve their knowledge of the many applications of Excel® and their confidence in using this package
- Improve their career prospects
- Impact upon shareholder value
- Develop greater confidence in discussing financial strategy
Introduction and Overview of Financial Modelling and the International Business Environment
- Define the Terms Model and Financial Model
- Learn the 10 steps to create good Financial Models
- Use Flowcharting Techniques to improve your model
- Overview of the strategic and operational aspects of a global business entity
- The Organizational Planning Model
- The Product/Decision/Information Cycle
- The Objectives of Financial Analysis
- Creating wealth by adding value
- Basic metrics of wealth creation and financial performance
Analysing the Annual Report and Creating Shareholder Value
- Ratio Analysis – The heart of Financial Analysis
- Use Excel® templates to calculate and interpret liquidity, leverage and profitability ratios
- Interpret the results of ratio analysis from an accrual accounting perspective
- The inter-relationship between the DuPont Formula and EVA®
- How to use the Altman Z-Score
- Use various investment surveys to benchmark the results of financial analysis
- What constitutes “Shareholder Value?”
- Finding the cost of equity
- Determine the Cost of Debt, Preferred Equity and Common Equity
- Calculate Weighted Average Cost of Capital (WACC)
- Develop the EVA© Model
- Impact of Acquisitions on WACC
The Time Value of Money and the Steps in Building Financial Models
- The impact time has on the value of money
- Understand the various interest calculations
- Using WACC and ROIC as benchmarks
- Use Excel® to determine Present Value, Future Value, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return
- Using IRR as a basis for capital project evaluation
- Situations that require models
- Models and Shareholder Value (EVA®)
- Identification of Forecast Validation Criterion
- Determination of Model and Forecast Horizons
- The recognition of risk in forecasts
- The Role of Assumptions in Financial Forecasting
Evaluating Capital Project Proposals and Effective Management of Historical Data Using Excel®
- Identify the various types of capital projects
- Discuss the capital project evaluation process
- Determining the initial and subsequent capital project cash flows
- Development of the “Hurdle Rate” for capital projects
- Discuss the use of “Terminal Value” in evaluating capital projects
- Use Excel® to evaluate capital projects by applying NPV, IRR, and Discounted Payback models
- Understanding the Approaches Used to Build Financial Forecasting Models
- Recognizing the Basic Patterns Inherent in Historical Data
- Using the Exploratory Data Analysis Tools Available in Excel®
- Key Factors in Determining the Proper Time Horizon to Choose for Your Model
- Determining Degrees of Reliability in Model Projections
- Selecting the Degree of Robustness and Sensitivity of the Model
- Understanding and Applying Selected Modelling Techniques
Use of Time Series Analysis and Evaluating Investment Portfolios
- Development of Time Series Models using histograms, moving averages, exponential smoothing, and regression analysis
- Mastering the use of Exponential Smoothing as a Data Analysis tool
- Validation of Time Series Analysis
- Appreciate the Meaning and Importance of Sensitivity Analysis
- Developing “What-if” Scenarios in Your Financial or Operational Models
- Using the Excel tools “Scenario and Goal Seek”
- Principles of risk measurement in individual shares
- Graphing expected return and risk using variance analysis
- Modern portfolio theory using the capital asset pricing model
- Managing a balanced portfolio
- Use Excel® to determine the beta of listed share on a securities market
- All financial professionals
- Financial management
- Department heads
- Internal auditors
- Project professionals
- Sales and marketing professionals
- R&D professionals
- And anyone who needs to understand the short and long-term financial impact of key decision
Sub Code | FA043 |
Start Date | Sun,Mar,27,2022 |
End Date | Thu,Mar,31,2022 |
Duration | 5 Days |
Fee(US$) | 2950 |
Location | Riyadh |
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