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