Financial Modelling & Decision Making
Why Attend
Course Objectives
Target Audience
Course Methodology
Why Attend
- Comprehensive Skill Development: This course equips participants with the skills needed to build and analyze financial models that are critical for decision-making in any business.
- Hands-On Application: Gain practical experience in building real-world financial models through case studies, group exercises, and simulations.
- Improved Decision-Making: Learn how to utilize financial data to make strategic business decisions, optimize investments, and manage risk effectively.
- Industry-Relevant Techniques: Learn best practices for financial modelling and decision-making that can be applied immediately to your organization or investment projects.
- Risk Assessment and Management: Understand how to assess the risk of financial decisions and learn how to adapt financial models to changing economic conditions.
- Increased Career Value: Financial modelling and decision-making are highly valued skills in finance, business development, and project management, enhancing your career prospects.
- Learn from Experts: Access expert-led guidance on advanced financial modelling techniques, market trends, and decision-making frameworks.
Course Objectives
By the end of this course, participants will be able to:
- Understand Financial Modelling: Develop an understanding of the principles and applications of financial modelling, including forecasting, budgeting, and valuation.
- Build and Analyze Financial Models: Learn to create robust financial models for decision-making, including profit and loss statements, balance sheets, and cash flow projections.
- Evaluate Investment Opportunities: Learn how to assess and value investment opportunities, including understanding key financial metrics such as NPV, IRR, and ROI.
- Make Data-Driven Decisions: Use financial models to make informed, data-driven decisions related to investments, project evaluation, and business expansion.
- Scenario and Sensitivity Analysis: Master the techniques of conducting scenario and sensitivity analysis to assess potential risks and opportunities.
- Interpret Financial Data: Develop the ability to interpret financial statements and other key financial data to derive actionable insights.
- Optimize Capital Structure: Understand how to optimize the mix of debt and equity financing to minimize costs and maximize business performance.
- Incorporate Economic and Market Trends: Learn how to integrate macroeconomic variables and market trends into financial models for more accurate forecasting.
- Apply Decision-Making Frameworks: Learn how to use financial models in conjunction with decision-making frameworks to improve organizational strategy and decision-making processes.
Target Audience
- Financial Analysts: Professionals who prepare financial reports, budgets, and forecasts and want to enhance their ability to build and analyze financial models.
- Business Executives & Managers: Senior leaders who need to make strategic decisions based on financial data, projections, and market trends.
- Investment Analysts & Portfolio Managers: Professionals involved in evaluating and managing investments who need to understand how to assess financial viability and risk.
- Accountants: Professionals who want to deepen their understanding of financial modelling and how it integrates with financial reporting and analysis.
- Entrepreneurs: Business owners who want to better understand how to create financial models for business planning, forecasting, and decision-making.
- Project Managers: Professionals who oversee projects and want to integrate financial modelling techniques for budgeting, cost estimation, and risk management.
- Students & Aspiring Finance Professionals: Individuals pursuing careers in finance or related fields who want to develop essential financial modelling skills.
Course Methodology
This interactive training course includes the following training methodologies as a percentage of total tuition hours:
- Lectures
- Workshops, work presentations ,
- Group Work in case study & Practical Exercises.
- Videos and general discussions
- Pre-Test and Post Test
Course Outline
Day - 1
Introduction to Financial Modelling
- What is Financial Modelling?
- Definition, purpose, and key components of financial modelling
- Importance of financial models in decision-making and business strategy
- Types of financial models: forecasting models, valuation models, and budget models
- Introduction to Excel for Financial Modelling
- Excel functions and shortcuts critical for building financial models (SUMIF, VLOOKUP, INDEX/MATCH, etc.)
- Using Excel tools for financial analysis: pivot tables, charts, and conditional formatting
- Key Financial Statements and Their Role in Modelling
- Overview of the income statement, balance sheet, and cash flow statement
- How these financial statements are used to build models and project future performance
Day - 2
Building a Basic Financial Model
- Setting Up a Financial Model
- Creating a model framework: inputs, assumptions, calculations, and outputs
- Developing financial projections: revenue forecasts, expenses, and profits
- Forecasting cash flows and understanding working capital
- Key Financial Ratios and Metrics
- Calculating and interpreting key financial ratios: profitability, liquidity, efficiency, and solvency ratios
- Using financial ratios in decision-making and assessing business performance
- Building a Profit & Loss (P&L) Statement Model
- Projecting revenue and expenses
- Modelling operating income, EBITDA, and net income
- Developing sensitivity analysis for various assumptions (e.g., sales growth, cost structure)
Day - 3
Advanced Financial Modelling Techniques
- Valuation Models
- Discounted Cash Flow (DCF) analysis: Discount rate, terminal value, and NPV
- Comparable company analysis and precedent transactions
- Using multiples for business valuation (P/E, EV/EBITDA, etc.)
- Scenario Analysis and Sensitivity Testing
- How to model different scenarios (best case, base case, worst case)
- Sensitivity analysis: testing how changes in key assumptions impact financial outcomes
- Developing risk models and understanding the impact of external factors (interest rates, market conditions)
- Financial Modelling Best Practices
- Structuring and organizing your financial model for clarity and accuracy
- Common mistakes to avoid in financial modelling
- Improving the accuracy and reliability of financial forecasts
Day - 4
Decision-Making Using Financial Models
- Using Financial Models for Strategic Decision-Making
- Applying financial models to make decisions about investment, cost reduction, and growth strategies
- Making data-driven decisions for business expansion, new product development, and capital expenditures
- Risk Management and Capital Budgeting
- Evaluating investment projects using financial models: Payback period, IRR, NPV, and ROI
- Capital budgeting decisions: determining whether to proceed with a project or investment
- Managing risk and uncertainty in decision-making
- Scenario-Based Decision-Making Exercises
- Practical exercises where participants apply financial models to make real-world business decisions
- Case studies of corporate financial decisions and their outcomes
Day - 5
Evaluating and Optimizing Financial Models
- Model Evaluation and Refinement
- Evaluating the reliability and performance of financial models
- Testing for accuracy, consistency, and completeness
- Optimizing financial models for scalability and future adaptability
- Advanced Decision-Making Frameworks
- Integrating financial modelling with decision-making frameworks like SWOT, PESTEL, and cost-benefit analysis
- Using decision trees and Monte Carlo simulations in financial decision-making
- Building a Robust Financial Model for Business Planning
- Combining financial models with business strategies to develop long-term growth plans
- Creating dashboards for continuous monitoring and decision-making