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