HOW to Do Business

Analysis using Excel INTRODUCTION TO THE FRAMEWORK OF FINANCIAL MODELING

Introduction

Some answers were overly complicated and highly technical:

“Representation of behavior/real-world observations through mathematical approach designed to anticipate range of outcomes.”

Some philosophical:

“A numerical story.”

Some incorrect:

“Forecasting wealth by putting money away now/investing.”

Some ridiculous:

“Something to do with money and fashion?”

Some honest:

“I really have no idea.”

And some downright profound:

“A complex spreadsheet.”

Introduction

Whilst there are many other (often very complicated and long-winded) definitions available from different

sources, the last answer might be more accurate, very broad, but accurate description: “a complex

spreadsheet.”

But DON’T BE AFRAID BECAUSE THIS TRAINING WILL SHOW TO CONSTRUCT THAT COMPLEX SPREAD SHEET.

In the end is just about input and output

Is Just About Inputs and Outputs!

What will you get?

Overview and technical knowledge about financial modelling in general, such as principal of

financial modeling, tool selection, model design, and best practice.

An extremely practical and hands-on excel utilization. Here we have outlined all of the tools,

techniques, and functions in Excel (about 30 functions!) that are commonly used in financial

modelling. Of course it does not cover everything Excel can do, but it covers the “must-know”

tools.

Common uses of financial model, such as modeling depreciation method, understanding

nominal and effective (real) rates, how to calculate WACC, several different methods of

performing scenarios and sensitivity analysis. Lastly, it covers the often-neglected task of

presenting model output.

Training Agenda

1. What is Financial Modeling?

•What’s the Difference between a Spreadsheet and a Financial Model?

•Types and Purposes of Financial Models

•Tool Selection

•What Skills Do You Need to Be a Good Financial Modeler?

•The Ideal Financial Modeler

2. Financial Statements and Cash Flows

•The Balance Sheet

•Liquidity

•Debt versus Equity

•Value versus Cost

•The Income Statement

•Generally Accepted Accounting Principles

•Noncash Items

•Time and Costs

•Net Working Capital

•Financial Cash Flow

•The Accounting Statement of Cash Flows

•Cash Flow from Operating Activities

•Cash Flow from Investing Activities

•Cash Flow from Financing Activities

3. Building a Model

•Model Design

•The Golden Rules for Model Design

•Design Issues

•The Workbook Anatomy of a Model

•Steps to Building a Model

•Information Requests

Training Agenda

4. Best Practices Principal of Modeling

• Document Your Assumptions

• Linking, Not Hard Coding

• Only Enter Data Once

• Avoid Bad Habits

• Use Consistent Formulas

• Format and Label Clearly

• Methods and Tools of Assumptions Documentation

• Linked Dynamic Text Assumptions Documentation

• What Makes a Good Model?

5. Financial Modeling Techniques

• The Problem with Excel

• Error Avoidance Strategies

• How Long Should a Formula Be?

• Building Error Checks

• Avoid Error Displays in Formulas

• Circular References

6. Using Excel In Financial Modeling

• Formulas and Functions in Excel

• Handy Excel Shortcuts

• Basic Excel Functions (MAX, MIN, SUM, COUNT, AVERAGE)

• Logical Functions (IF, AND, OR)

• Nesting: Combining Simple Functions to Create Complex Formulas

• Cell Referencing Best Practices

• Named Ranges

Training Agenda

7. Functions for Financial Modeling

• Aggregation Functions (COUNTIF, SUMIF, COUNTIFS, SUMIFS)

• LOOKUP Formulas (VLOOKUP, HLOOKUP)

• Other Useful Functions (OFFSET, INDEX, MATCH, CHOOSE)

• Working with Dates (TODAY,NOW, EOMONTH, EDATE)

• Financial Project Evaluation Functions(NPV,IRR, XNPV, XIRR)

• Loan Calculations (PMT, PPMT, IPMT)

8. Tools for Model Display

• Basic Formatting

• Custom Formatting

• Conditional Formatting

• Spark lines

• Bulletproofing Your Model

• Customizing the Display Settings

• Form Controls

9. Tools for Financial Modeling

• Hiding Sections of a Model

• Grouping

• Array Formulas

• Goal Seeking

• Pivot Tables

Training Agenda

10. Balancing the Model

• Escalation Methods for Modelling

• Understanding Nominal and Effective (Real) Rates

• Calculating Cumulative Totals

• How to Calculate a Payback Period

• Weighted Average Cost of Capital (WACC)

• Building a Tiering Table

• Modelling Depreciation Methods

• Break-Even Analysis

11. Model Review

• Rebuilding an Inherited Model

• Auditing a Financial Model

12. Stress-Testing, Scenarios, and Sensitivity Analysis in

Financial Modeling

• What’s the Difference between Scenario, Sensitivity, and What-If Analysis?

• Overview of Scenario Analysis Tools and Methods

• Advanced Conditional Formatting

• Comparing Scenario Methods

Training Agenda

13. Presenting Model Output

• Handy Charting Hints

• Dynamic Range Names

• Charting with Two Different Axes and Chart Types

• Creating Dynamic Chart (Scroll Bar, Spin Button)

• Bubble Charts

• Waterfall Charts

Adjustor

3%

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200

400

600

800

1,000

1,200

1,400

Jul Aug Sep Oct Nov Dec

Six Month Financial Summary

Sales COGS Gross Profit G&A Others Expense Net Profit

Training Desktop

Date : see at the website “futurum corfinan” (2-day training)

Venue : Hotel at Jakarta Pusat

Note :

Participants should bring a laptop with a running Excel 2010

Presentation slides will be distributed in softcopy

Minimum participants = 10 persons

After the training, participants are allowed to discuss about the training materials

via email in the website

Contact email : futurumcorfinan@gmail.com

Visit Website and Training Testimonials : google “futurum corfinan”