Here is the outline of the online course I have been running this month. I will be running it again soon and I will be giving you the chance to become my student on the course. Over the next few weeks I will be sharing with you some of the materials that I developed and used for this course so that you can see just how suitable they are for yourself and your organisation. Watch this blog’s home page for details.

My FREE materials are available for download at the end of this page.

To find further information and to sign up for my future courses, go to this pagehttps://www.ctsolutionsglobal.com/finance-and-economics and scroll down for the accounting course details.

Introductory Financial Modelling: Course Outline

Introduction

This introductory course is suitable for a two day live training course and an eight hour online webinar style programme. The essence of the course is to provide delegates with an introduction to the basic topics that everyone with an interest in financial model must be aware of.

The course content and practical exercises are centred around Microsoft Excel and a significant number of Excel functions and techniques will be reviewed during the course.

Training methodology

Whether the course is provided as live training or as an online experience, the training methodology is essentially the same:

The trainer will introduce each topic with a discussion and/or practical exercise and the delegates will then be provided with a follow up exercise to complete on their own. The final result will be shared with everyone either by confirmatory discussion during the session or by means of sharing the trainer’s completed Excel file.

All delegates will receive a full set of training notes and Excel files: both delegate and trainer versions. There will also be PowerPoint slides and other support materials that will form an integral part of the course.

Live Presentation

Because of the physical presence of everyone in the training room, the course will be more organic in nature. Reactions to topics and exercises, the ability of the trainer to interact directly with delegates during exercise times and so on will enable the materials to flow both in linear and non linear ways.

Online Presentation

Because of the remote nature of online training, the intimacy of physical presence is lost: there is little chance for familiarity. Initially, at least, whilst it is relatively easy for the trainer to work in as normal a way as possible, the remoteness of distance is often a barrier, at least in the initial stages of the course.

Workshop prerequisites

Required Outcomes

After completing this workshop the delegate should be able to:

Course Content: Live Presentation

 PART I: Design and Efficiency
In this first Part we will take a specific look at the design of a financial model, providing insight into the usage of spreadsheet maps, formatting and calculations. This section will provide a hands on focal point for designing of your own financial model using Excel.

Section One

Producing and Publishing Model Output for effective communication and workability

Cases
You will be provided with specific examples of good, average and poor practice from around the word to illustrate the best ways to create and maintain your financial models.
Part II: Financial Analysis Models

In Part two we undertake a review of data that organisations provide for us: the data normally comes from the financial reporting process. We then undertake a systematic and interactive review of the data we have gathered. A comprehensive examination of the key components of financial statements and financial management will assist in developing effective models that will be vital as you create a world class financial model using Excel.

Section Two

Systematically analysing financial statements for improved model performance

Cases

1 Using extracts from annual reports and accounts of various organisations, as well as time series data from financial reporting web sites, carry out a fundamental analysis of key results.

2 Apply the time value of money concepts to corporate data in an attempt to understand the basics of corporate valuation as well as the application of concepts.

Section Three

Highlighting key financial management principles underpinning effective model development

Cases
Derive the WACC for an organisation and appreciate how such a hurdle rate can be applied in a capital budgeting setting.

Course Content: Online Presentation

In every two hour session, the first hour will comprise discussion and worked examples and the second hour will comprise delegate follow up exercise work and conclude with topic review, including Q&A.
PART I: Design and Efficiency
In this first Part we will take a specific look at the design of a financial model, providing insight into the usage of spreadsheet maps, formatting and calculations. This section will provide a hands on focal point for designing of your own financial model using Excel.

Hours 1 – 2

Section One

Producing and Publishing Model Output for effective communication and workability

  • Style, formatting and layout
  • Fonts colours, backgrounds and borders
    • Formatting
    • Colour coding
  • Comments and Notes
  • Comment
    • Note
  • Sign convention
Part II: Financial Analysis Models

In Part two we undertake a review of data that organisations provide for us: the data normally comes from the financial reporting process. We then undertake a systematic and interactive review of the data we have gathered. A comprehensive examination of the key components of financial statements and financial management will assist in developing effective models that will be vital as you create a world class financial model using Excel.

Hours 3 – 4

Systematically analysing financial statements for improved model performance

Section Two

  • Financial Statements
    • Appreciating the structure and content of Income Statements and Balance Sheets
    • Improving displays by using Power Query and Power Pivot
  • Financial Ratios
    • Calculating and interpreting financial ratios
    • DuPont analysis of Return on Equity
  • Financial Forecasting
    • An example of forecasting earnings from components of ROE
  • Breakeven and Leverage Analysis
    • Calculating break even points: theoretical and practical
    • Calculating degrees of operational, financial and combined leverage

Hours 5 – 6

  • Time Value of Money
    • PV (Present Value) and FV (Future Value) Calculations
      • from first principles and using PV and FV functions
    • Arithmetic Growth in cash flows
    • Geometric growth of cash flows
    • Deferred and altering cash flows
  • Rates of Return
    • Arithmetic, Geometric and Continuous Compounding
    • Yields on uneven returns
    • Internal Rates of Return

Hours 7 – 8

Highlighting key financial management principles underpinning effective model development

Section Three

  • Cost of Capital
    • Cost of Equity
    • Cost of Debt
    • Tax impact on Cost of Capital
    • Calculating the Weighted Average Cost of Capital (WACC) and Hurdle rates
    • Marginal WACC curve and finding break points
  • Reviewing Capital Budgeting
    • Cash flow modelling
    • Decision modelling, including:
    • Payback Period
    • NPV (Net Present Value): NPPV, XNPV
    • IRR (Internal Rate of Return): IRR, MIRR, XIRR
    • Sensitivity analysis
    • Optimum Capital Budget
  • Leasing v borrowing and buying

Feel free to contact me here if there are any problems or concerns you might have: comment on this page and I will respond as quickly as possible.

Downloads …

Duncan Williamson

30th May 2020 and 5th June 2020

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