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Financial Modeling

AMT’s two day intensive modeling program teaches participants the steps required to accurately build a three statement forecast model. This includes best practice modeling techniques, how to deal with circularities, building detailed revenue forecasts and cash sweeps and (the often overlooked skill of) error checking.

Description

This course is highly practical and participants learn by working through a series of practice files which have increasing levels of difficulty. We will look at how common errors can be quickly identified and fixed including how to fix a non-balancing balance sheet to debugging a model that is non-intentionally circular.

Who should attend? 

Those working within the following functions

  • Finance
  • Corporate Finance/Investment Banking
  • Equity Research
  • Fund /Asset Management
  • Consultancy
  • Private Equity

Duration: 2 day program

Course Objectives

  • Practice keyboard shortcuts in Excel and common forecasting formulas
  • Learn how to build a fully integrated three statement financial forecast using industry best practice
  • Understand how to model debt including flexible debt repayments
  • Discuss key ratios and how assumptions affect these ratios

Course Content

Day 1

Financial modeling fundamentals

  • Using keyboard shortcuts
  • Setting Excel up for maximum efficiency
  • Working with key modeling formulas and structures
  • Building 3-statement projections
  • Modeling cash and revolver
  • Addressing standards for good models
  • Constructing the income statement, balance sheet and cash flow statement
  • Introduction to checking methodologies
  • Performing audit trails
  • Incorporating interest income and expense

 Three statement modeling

  • Modeling operating cash, excess cash and the revolver
  • Calculating interest on cash and debt balances
  • Working with intentional circular references
  • Avoiding non-intentional circular references
  • Building models with different styles and layouts
  • Calculating ratios

Day 2

 Financial modeling and forecasting

  • Complex 3 statement models
  • Modeling a detailed revenue forecast
  • Modeling a cash sweep
  • Modeling a detailed debt schedule include a cash sweep
  • Consolidating and re-applying knowledge of circularity, iteration, and a toggle switch
  • Building cash flow statements from scratch
  • Troubleshooting techniques for cash flow statements
  • Finding errors and integrity checking

 Integrity and error checking

  • Troubleshooting techniques for cash flow statements
  • Finding errors and integrity checking
  • Using Excel tools to help with integrity checking
  • Finding unidentified hard numbers quickly and easily
  • Using Excel’s “Jump tool” to trace through formulas with ease
  • Using Excel to show the formulas underlying output
  • Using Excel to find inconsistencies in the model
  • Using Excel’s auditing tool to trace formulas

Prerequisites

A good understanding of basic accounting transactions and the relationship between the three financial statements.

Please note:

This course is non-residential. The venue will provide light refreshments.

You need to bring a Windows-based laptop to the training with Excel, Winzip and Adobe to access the files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course.

AMT reserve the right to cancel or postpone sessions or change content if registrations are insufficient to continue 2 weeks prior to scheduled commencement date. Registrants will be given at least 5 business days’ notice of such changes.