Financial Modelling in Excel

Learn to build financial models that decision makers can trust.

5 daysIntermediate10 modules

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Overview

About this course

Learn to build financial models that decision makers can trust. Working in Excel from the first session, you will create a fully linked three-statement model, forecast from clearly stated assumptions and check that everything balances.

You will then add capital expenditure and debt schedules, run scenarios and sensitivity tables, value a business or project using discounted cash flow, and present the results in a clear summary. The emphasis throughout is on models that are transparent, easy to review and simple to update.

What you'll learn

Apply good modelling practice for structure, formatting, documentation and error checks.
Build a fully linked three-statement model in Excel.
Forecast revenue, costs, working capital and capital expenditure from clearly stated assumptions.
Model depreciation, debt schedules and interest.
Run scenario and sensitivity analysis using data tables and scenario switches.
Value a business or project using discounted cash flow.
Present model outputs clearly with summary sheets and charts for decision makers.

Curriculum

10 modules

What makes a model reliable
Model structure and flow
Formatting and colour conventions
Documentation and version control

Lookup and reference functions
Logical and date functions
Named ranges
Keyboard shortcuts for speed

Setting up historical statements
Calculating historical drivers
Building an assumptions sheet
Separating inputs, calculations and outputs

Revenue forecasting methods
Cost and margin forecasts
Operating expenses
Tax and net income

Forecasting receivables, inventory and payables
Working capital days
Other assets and liabilities
Equity and retained earnings

Capital expenditure schedule
Depreciation schedule
Debt and repayment schedule
Interest calculations and circularity

Building the cash flow statement from the model
Linking cash to the balance sheet
Balance checks
Finding and fixing errors

Scenario switches
One-variable and two-variable data tables
Goal Seek
Interpreting sensitivity results

Free cash flow
Discount rate
Terminal value
Enterprise value and equity value

Summary and dashboard sheets
Charts for decision makers
Reviewing someone else's model
Final case model

Who it's for

Finance staff, analysts, accountants and managers who prepare budgets, forecasts, business plans or valuations in Excel.

Before you start

Confident everyday use of Excel, including formulas and common functions.
An understanding of the three main financial statements.

Diplomas

Part of these Alalamia diplomas

Let's plan your next step together.

Tell us the course or certification you have in mind and we'll send the outline, upcoming dates, fees and private-team options.

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