BASIC FINANCIAL MODELING

A PRACTICAL APPROACH TO CREATING AND IMPLEMENTING YOUR FIRST CORPORATE MODEL

USING MS EXCEL©

Why We Have This Training for You!

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• How many times, after reading MS Excel books, when an analyst is faced with a real-world financial modeling problem, he or she is somewhat unclear as to where to start and what to do, since all that he/she is shown in the books is only the workings of useful MS Excel functions and formulas….

• After a while you forget all those MS Excel functions and formulas (to be honest, MS Excel functions and formulas are not really natural to remember).

• Then you apply for a training course on the Financial Modelling….

AND THIS IS FOR YOU

REMINDER : This is a class with MS Excel practices

Don’t forget to bring your laptop that include MS Excel program

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Prior to Good Application: Good Thinking

“Sheet 1” Syndrome Someone is intimidated by the vastness of the financial modelling process and stares at the first sheet of a new, blank MS Excel workbook, wasting time and fretting about what to do first.

Look Before You Leap

•Financial Modeling : An Overview

•Financial Modeling : Best Practices

•Financial Modeling : Functions and Tools and Calculations

•Financial Modeling : Planning Your Model

This Part is LESS ABOUT DOING and MORE ABOUT THINKING

ABOUT DOING

Now Time to Apply It!!!

• Building a Basic Corporate Model• How to Make your forecasted

Balance Sheet balance (even if you are not an accountant)

• Building a Corporate Model with History

• Building a Corporate Model with Minimum Cash

• Building a Cash Flow Plug• Building a Timing Reference • Building Flags or Calculation Masks• Using Solver to solve Capital

Budgeting Analysis

A Bit Taste of Intermediate

Level: Learning by

Doing

• Modeling Front, Inputs, Calculations and Outputs Sheets

• The Use of Flag in Identifying Development Periods, Construction Periods and Operational Periods

• The Use of Goal Seek • Following financial concepts shown in the

example:• Debt vs. equity• Interest rate (compounded)• Rolled-up interest• Debt Service Coverage Ratio (DSCR)• Cash flow available for debt service (CFADS)• Inflation• Cash flows• Internal rate of return (IRR and XIRR functions)• Equity• Cash waterfall

Using a Case Study to show how to build a Cash Flow Model (NO Balance Sheet and No Income Statement).

Thus, you could put down your Accounting Book!

Train Your Employees!

By now, we’ve probably all heard the classic HR executives’ exchange —

Colleague #1: “What if we pay to train our people and they leave?”

Colleague #2: “Right, but what if we DON’T train them and they NEVER leave?!?”

We can all agree that the latter scenario is worse.