Financial Analysis Modeling and Forecasting

Why Attend

Financial professionals are often asked to provide analysis and projections of finances to help management make decisions. By attending this course, you will be able to prepare and build financial analysis models effectively, understand and analyze the time value of money, and prepare forecasted financial statements.

Financial Analysis, Modeling, and Forecasting is a course that focuses on the principles, techniques, and tools used in financial analysis, modeling, and forecasting. This course aims to provide students with the skills and knowledge necessary to analyze financial statements, develop financial models, and forecast future financial performance.

The course is a hands-on workshop that applies MS Excel to model financial analysis and forecasting through different exercises and case studies.

By the end of the course, participants will be able to:

• Use financial ratio analysis to interpret organizational financial performance and position
• Calculate financial ratios related to the cash flow statement  
• Utilize Microsoft Excel in the time value of money calculations
• Apply MS Excel modeling tools and functions such as spinner, list box, option button, etc.
• Forecast and build models for the three main financial statements

Financial controllers, analysts, finance and accounting managers, supervisors, and finance professionals who need to interpret and analyze financial statements and use them to create financial forecast models in their organizations.

Target Competencies

• Understanding and performing financial analysis
• Performing vertical, horizontal, and trend analysis
• Financial forecasting
• Modeling financial statements
• Applying Excel functions and tools

Note

This training course is a workshop that relies extensively on using laptops. Participants must bring their own laptops equipped with Excel 2016 or a later version.

• Understanding and performing financial analysis
• Performing vertical, horizontal, and trend analysis
• Financial forecasting
• Modeling financial statements
• Applying Excel functions and tools

Course outlines

• Financial Analysis Techniques
  • Vertical analysis and strategy
  • Horizontal, trend analysis, and growth
  • Liquidity analysis:
    • Current, quick, and cash ratios, defensive interval, and cash conversion cycle
  • Asset management and activity ratios:
    • Total and fixed assets turnover
  • Solvency analysis:
    • Debt, equity, and times interest earned ratios
  • Profitability analysis:
    • Profit margin, gross margin, return on assets, return on equity, EBITDA
  • Market and valuation:
    • Price earnings and earnings-per-share ratios
  • DuPont analysis: The three-step and five-step models
  • Limitation of ratio analysis
• Cash flow statement: Interpretation and ratio analysis
  • Cash flow categories: Operating, investing, and financing
  • Cash flow pattern; the cash cow
  • Cash-flow-related ratios:
    • Quality of earnings
    • Financial management
    • Mandatory cash flow
    • Discretionary cash flow
• Financial calculations in MS Excel
  • Time value of money:
    • Present Value (PV) and Net Present Value (NPV)
    • Internal Rate of Return (IRR) and Multiple IRR (MIRR)
    • Using XNPV and XIRR
  • Effective yields and returns

• Model construction techniques using Excel
  • Data tables
  • Goal seek
  • Spinner data modeling
  • List box data modeling
  • Option box data modeling
• Modeling projected financial statements
  • Micro and macro factors
  • Forecasting sales
    • Estimating market demand
    • Estimating company demand
    • Developing sales forecast
  • Forecasting cost of sales
  • Forecasting operating expenses
  • Forecasting key assets and liabilities accounts
  • Modeling the income statement
  • Modeling the balance sheet
  • Modeling the cash flow statement