INTRODUCTION
Financial modelling is key to every business. Financial models can inform budgeting, forecasting, investment analysis, cash flows, loan sizing, valuation the list is endless. If your financial models aren't right, your business is going to make bad decisions.
Using a real life Excel example, this course takes you through a process where you can learn how to develop forecasts and perform financial analysis. It leads you through a series of steps required to create your own model.
Corporate Financial Modelling: Building Forecasts and Cash Flows course helps you take a simple historic spreadsheet model and develop it by adding a financial forecast and using other forecasting techniques.
OBJECTIVES
This Corporate Financial Modelling Building Forecasts and Cash Flows Course will enable you to: Understand the different forecasting methods available to you in Excel and apply them to your own data
Use ratio analysis to produce a forecast
Use cash flows to assess the impact of company strategy on the ability of the company to generate cash flows going forward;
Use the base case and downside cash flow forecasts to structure a company s optimum repayment schedule given the anticipated challenges of its future operating environment;
Use the cash flow forecasts and the financial modelling in the context of drafting the term sheet for the loan document;
Generate expectations of future performance and provide forecasted statements and cash flows
Create a flexible model which can be used to review different scenarios, and where inputs can be quickly changed, and results quickly accessed
WHO SHOULD ATTEND ?
This Corporate Financial Modelling Building Forecasts and Cash Flows Course ideal for: Professionals in corporates and financial institutions who need to create useful and robust financial models, Forecasts and Cash Flows.
COURSE OUTLINE
Day 1
Forecasting
What are the forecasting basics?
What causes forecasting errors?
What types of charts should we use?
How do we review forecasts?
How can we appraise accuracy?
How do we analyse data in Excel?
Day 2
Forecasting methods
How can we identify patterns?
What is the simple percentage plus method?
How do we use compound annual growth rate?
How are trends useful?
What is smoothing?
How do we look at seasons?
How do we use regression?
What is the inflation problem?
Day 3
Ratios
What factors can affect cash flow?
What are the core ratios?
What are the profitability ratios?
What ratios measure operating efficiency?
What ratios can help with financial structure?
Is growth sustainable?
What are the market ratios?
What error functions and units should be considered?
What checks are required?
Day 4
Forecast drivers
What assumptions can we make?
How do we generate the income statement?
How are balance sheet assets generated?
What about balance sheet liabilities?
Why are the workings sheets important?
How do we deal with divisions?
Day 5
Accounting statements
What is the structure of the balance sheet?
How do we model the income statement?
How do we model the balance sheet?
What are the mechanics of cash flow?
What are the cash flow ratios?
Can we avoid common mistakes?
How should we deal with iteration?
What further checks are needed?
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