Advanced Financial Modelling

Pricing

Cost for BPP PD Members: £1040 + VAT + 12 CPD Hours
(£1300 + VAT for non BPP PD Members) Click Here for details of our membership scheme.)

Course level

Advanced

Delegates

This course will be of benefit to those who are already familiar with Excel and its more advanced functions, who have experience of building financial models and of using other people's or standard models.

Overview

This two-day advanced course is designed to teach you modelling ‘best practice’ and how to make models that meet formal audit requirements. It also critically assesses the merits of the different tools available in Excel, and looks at the practical applications of a number of Excel techniques and less commonly used functions.

Courses are capped at a maximum of 12 delegates to ensure you receive the most effective training during your session.

A sound knowledge of Excel formulae and functions and their practical applications is assumed, as well as familiarity with the common problems encountered when building financial models. Prior attendance on our Practical Financial Modelling course is strongly recommended to ensure the necessary familiarity with shortcuts, design and the Excel function fundamentals.

Learning outcomes include obtaining a greater understanding of:

  • Golden Rules of Model Design
    -Input, calculation and output areas
    -Key rules to follow
    -Design rules, model structure and set up
  • Building a financial forecast
    -Objectives, structure and building the core of the model
    -Sources of information
    -Historic information, cleaning the numbers
  • Forecasting the income statement
    -Dealing with segment forecasts - divisional analysis
    -Forecasting to EBITDA
    -Dealing with taxation – determining the correct tax rate, marginal taxation, tax losses and deferred tax
    -Forecasting dividends – pay out as a driver, yearly off set
  • Forecasting the balance sheet
    -PPE – capex, depreciation and disposals, links to the cash flow statement
    -Working capital – drivers for receivables, payables and inventory, days based drivers
    -Associates and non controlling interests– forecasting returns and dividends
    -Provisions – distinguishing between cash and non cash provisions, income statement and balance sheet issues
    -Shareholders equity – retentions, share issues and buy backs
  • 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
    -Different methods to select the scenarios - numbers, data validation, simple Visual Basic (VB) tools, using the key form functions
  • 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

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."


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