Financial Modeling And Forecasting: Building Data-driven Insights

Introduction:

Accurate financial models and reliable forecasts are essential tools for informed decision-making in today's dynamic business environment. This comprehensive training course on Financial Modeling and Forecasting equips participants with the skills to build robust financial models, generate accurate forecasts, and analyze financial data to support strategic decision-making. Participants will learn how to use best practices and advanced techniques, including spreadsheet modeling, scenario analysis, and valuation methodologies, to create insightful financial projections and assess business opportunities. This course empowers professionals to confidently develop and interpret financial models, contributing to sound financial planning and strategic success.

Target Audience:

This course is designed for professionals who need to build and use financial models for analysis, forecasting, and decision-making, including:

• Financial Analysts
• Investment Analysts
• Business Analysts
• Corporate Finance Professionals
• Accountants
• Anyone involved in financial planning and analysis

Course Objectives:

Upon completion of this Financial Modeling and Forecasting training course, participants will be able to:

• Build robust financial models using spreadsheet software (e.g., Excel).
• Develop accurate financial forecasts using various techniques.
• Conduct sensitivity analysis and scenario planning.
• Perform valuation analysis using discounted cash flow and other methods.
• Analyze financial data and interpret model outputs.
• Use financial models to support strategic decision-making.
• Understand the key assumptions and drivers of financial models.
• Assess the limitations of financial models and forecasts.
• Communicate financial model insights effectively.
• Apply financial modeling and forecasting to various business contexts.
• Improve financial planning and analysis capabilities.
• Enhance decision-making related to investments, financing, and operations.
• Gain a deeper understanding of business drivers and value creation.
• Increase efficiency and accuracy in financial modeling.
• Contribute to improved financial performance.

DURATION

10 Days

COURSE OUTLINE

Module 1: Introduction to Financial Modeling

• Purpose and uses of financial models.
• Types of financial models (e.g., forecasting, valuation, budgeting).
• Key principles of financial model design and best practices.
• Setting up a financial model in a spreadsheet (e.g., Excel).
• Organizing and documenting financial models.

Module 2: Spreadsheet Modeling Fundamentals

• Essential spreadsheet functions and formulas for financial modeling.
• Data input and validation techniques.
• Cell referencing and naming conventions.
• Creating charts and graphs for data visualization.
• Working with large datasets and tables.

Module 3: Building a Basic Financial Model

• Creating a simple income statement model.
• Forecasting revenue and expenses.
• Calculating key financial metrics (e.g., gross profit, operating income, net income).
• Integrating assumptions and drivers into the model.
• Testing and validating the model.

Module 4: Forecasting Techniques

• Time series analysis and forecasting methods (e.g., moving average, exponential smoothing).
• Regression analysis and its applications in financial forecasting.
• Qualitative forecasting methods (e.g., Delphi technique, market research).
• Combining different forecasting techniques.
• Evaluating forecast accuracy.

Module 5: Scenario Analysis and Sensitivity Analysis

• Performing sensitivity analysis to identify key model drivers.
• Creating scenario analyses to assess the impact of different assumptions.
• Using data tables and Goal Seek in scenario analysis.
• Visualizing scenario analysis results.
• Interpreting scenario analysis outputs.

Module 6: Building a Three-Statement Financial Model

• Creating a comprehensive financial model that links the income statement, balance sheet, and cash flow statement.
• Forecasting each of the three financial statements.
• Integrating assumptions and drivers across the three statements.
• Balancing the balance sheet and ensuring consistency.
• Validating the three-statement model.

Module 7: Cash Flow Modeling

• Forecasting cash inflows and outflows.
• Building a cash flow statement model.
• Analyzing cash flow patterns and trends.
• Calculating free cash flow.
• Using cash flow models for liquidity analysis.

Module 8: Valuation Modeling

• Introduction to valuation techniques (e.g., discounted cash flow analysis, relative valuation).
• Building a discounted cash flow (DCF) model.
• Estimating the cost of capital.
• Calculating terminal value.
• Performing sensitivity analysis on valuation inputs.

Module 9: Financial Ratio Analysis

• Calculating and interpreting key financial ratios (profitability, liquidity, solvency, efficiency).
• Using ratio analysis to assess financial performance and identify trends.
• Comparing financial ratios across different companies and industries.
• Integrating ratio analysis into financial models.

Module 10: Project Finance Modeling

• Building financial models for project evaluation.
• Forecasting project cash flows.
• Calculating project NPV, IRR, and payback period.
• Performing sensitivity analysis on project inputs.
• Analyzing project risks and uncertainties.

Module 11: Mergers and Acquisitions (M&A) Modeling

• Building financial models for M&A transactions.
• Analyzing the financial impact of M&A deals.
• Calculating key M&A metrics (e.g., accretion/dilution, synergy analysis).
• Integrating pro forma financial statements.

Module 12: Budgeting and Forecasting

• Building operating budgets and financial forecasts.
• Forecasting revenue, expenses, and capital expenditures.
• Integrating budgets with financial models.
• Using budgeting models for performance management.

Module 13: Financial Model Best Practices and Error Handling

• Best practices for financial model design, construction, and documentation.
• Common errors in financial modeling and how to avoid them.
• Debugging and validating financial models.
• Using spreadsheet tools for error checking and auditing.

Module 14: Advanced Modeling Techniques

• Using advanced spreadsheet functions and tools for financial modeling (e.g., array formulas, macros).
• Building dynamic and interactive financial models.
• Incorporating uncertainty and probability distributions into financial models.
• Using simulation techniques for risk analysis.

Module 15: Presenting and Communicating Financial Model Insights

• Creating clear and concise presentations of financial model results.
• Communicating financial model insights to different audiences.
• Using data visualization techniques to enhance communication.
• Preparing written reports and summaries of financial model findings.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.