Intermediate financial modelling

Modelling best practice 

Those who are already familiar with Excel and its functions, who are looking to enhance their ability to build financial models and to review and analyse other models.

• An introduction to modelling best practice: discover how to build well structured financial models.
• A critical assessment of the merits of the different tools available in Excel.
• An overview of the practical applications of a number of Excel techniques and less commonly used functions.

A real life discounted cash flow (DCF) valuation model is built over the two days for a FTSE 100 company.

The speaker will be drawn from a pool of qualified professionals who specialise in this subject. Having worked for leading organisations they will relate the course content to real life case studies.

• Golden rules of model design: input, calculation and output areas; design rules, model structure and set up; checks and balances.
• Building a financial forecast: objectives, structure and building the core of the model: sources of information; historic information, cleaning the numbers for exception non-recurring items.
• Forecasting the income statement: dealing with segment forecasts - divisional analysis; forecasting to EBITDA and working capital; dealing with taxation - determining the correct tax rate, marginal taxation, tax losses.
• Forecasting the balance sheet: SUMIF to construct a practical balance sheet; PPE - capex, depreciation and disposals, links to the cash flow statement; associates and non-controlling interests - forecasting returns; provisions - distinguishing between cash and non cash provisions, income statement and balance sheet issues; shareholders equity.
• Linking up the cash flow statement: key interactions between financial statements; constructing the debt schedule - creating a debt waterfall; debt modelling without circularity; problems of circular models; 'solving' circularity with switches and macros.
• Working with scenarios: scenario management - the LOOKUP school; different methods to select the scenarios - numbers and data validation.
• Valuation: DCF to enterprise and equity value.
• Key auditing tools: using ratio analysis - growth and CAGR, primary and secondary ratios; completing the auditing process - creating a check sheet, auditing tools, finding links.

Delegates have exclusive use of a PC throughout the course. Numbers are restricted to 12 to ensure you receive the most effective training during your session.

12 CPD hours (where applicable)

A basic knowledge of Excel formulae and functions and their practical applications is assumed, as well as familiarity with the basic accounting concept of an integrated income statement, cash flow and balance sheet.

Prior attendance on Introduction to financial modelling  is recommended.

CIMA on demand
CIMA on demand is a high quality online professional development solution, specifically designed for busy finance and business professionals. Find out more.