Advanced financial modelling course – 3 days

The advanced modelling course builds up an investment or business case model through all key stages, to final reporting, over three days. Day one starts by reviewing current financial modelling practice and introducing a case study for the course. Sessions throughout the program then add features to the initial template, demonstrating the advantages of advanced modelling methods.

Day 1 of the course - advanced financial modelling principles

• Session 1 - Excel financial modelling "style"
  • Introduction to the advanced modelling course
  • Excel financial modelling style - a systematic design method for model building
  • Outline for the course case study
  • The role of planning in advanced financial modelling

Advanced modelling exercise: reviewing and commenting on existing models

• Session 2 - template for a financial model
  • Setting up a model template
  • Layout methods
  • Formats, numbers and colours
  • Flexible timing and date functions
  • Useful advanced Excel techniques and modelling shortcuts

Advanced financial modelling exercise: starting an application template and setting up required spreadsheet tabs

• Session 3 - modelling revenue and costs
  • Modelling operational revenue
  • Volume drivers
  • Counters
  • Efficient coding techniques
  • Fixed and variable cost
  • Real and nominal considerations

Advanced financial modelling exercise: plotting revenue and costs to calculate initial gross margin

• Session 4 - modelling margin
  • Operating margin
  • Debt funding
  • Fixed asset schedule
  • Avoiding links and circular references

Advanced financial modelling exercise: adding debt and asset schedules to generate income and balance sheet entries

Day 2 of the financial modelling course - using an advanced model

Day two of the advanced modelling course builds on the workings and exercises from day one to produce financial statements. Key results for the model include net present value and internal rate of return, together with sensitivity testing. The final session of day two of the course includes an exercise on the role of auditing in financial modelling.

• Session 5 - modelling cash flow
  • Basic income and balance sheet
  • Adding cash flow to the financial model
  • Cash flow schedule
  • Model integrity and self checks
  • Useful advanced functions: ISERROR

Advanced financial modelling exercise: calculating key Excel model results by using different discounting techniques

• Session 6 - modelling returns
  • Accounting returns
  • Modelling terminal value
  • Cumulative and simple discounting
  • Useful advanced functions: NPV, IRR, MIRR

Advanced financial modelling exercise: stress testing with sensitivity and what if analysis

• Session 7 - sensitivity analysis in a model
  • Common modelling errors
  • Comprehensive scenario manager
  • Sensitivity analysis
  • Dashboard analysis

• Session 8 - model auditing
  • Excel audit checks
  • Checking the current financial model
  • Integrity checks
  • Circular references
  • Links
  • Stress testing the model

Advanced financial modelling exercise: developing an auditing framework for the model. Identifying errors

Day 3 of the course - other advanced financial modelling topics

Day three of the financial modelling course adds more advanced Excel features and methods to the model.

• Session 9 - introduction to macros
  • Recording model macros
  • Checking macros
  • Amending macros

Advanced financial modelling exercise: writing, recording, auditing and checking macros

• Session 10 - model optimisation
  • Using Goal Seek and Solver
  • Efficient use of optimisation in financial modelling

Advanced financial modelling exercise: optimising Excel model results against pre-determined criteria

• Session 11 - model data analysis
  • Other advanced modelling functions
  • LOOKUP functions
  • Pivot tables
  • Reporting tools

Advanced modelling exercise: analysing financial data using Excel tools

• Session 12 - completing the financial model
  • Financial modelling documentation
  • Printing the model
  • Charts in Excel
  • Executive summary

Advanced modelling exercise: final model checks. Reporting on findings from the financial model

More on FTA's advanced financial modelling program

For further details of Financial Training Associates' advanced Excel course, please see our advanced financial modelling program.

Book on the advanced financial modelling course

This program is next running Mar 2012. To book on the advanced financial modelling course please click on the "red booking button" below.