Financial Analysis, Modeling and Forecasting Certification Course

Why Select this Training Course?

When examining a prospective acquisition, a sale, or how to allocate funds, corporate development teams will often employ models to better understand how this may affect revenues and expenditures. Managers use financial analysis and modeling to anticipate the company’s cash flow at a future date by projecting revenues and costs.

What differentiates financial modeling from financial forecasting?  

Financial modeling and forecasting are two central concepts in financial management, and while finance experts routinely utilize both concepts, they hold different meanings. Financial modeling involves developing a financial representation or model, and the model developed is utilized in creating business decisions. A financial model helps determine the effects of a management decision on an economic event. Excel and Spreadsheets are two standard tools used in designing a financial model. On the other hand, financial forecasting involves a company preparing for its financial future. When an organization performs a financial forecast, the goal is to determine the expectations for future financial results. Forecasting also helps a company recognize debts or assets required to achieve its priorities and goals.

What are the techniques of financial analysis?

Financial analysis is evaluating a firm’s financial statements for decision-making. Internal and external shareholders utilize a financial analysis report to understand and assess the general financial health of a company, together with its business value and financial performance. Different techniques are used to analyze a financial statement, including ratio analysis, comparative statements, common-size statements, funds flow analysis, trend analysis, and cash flow statement/analysis.

The Rcademy Financial Analysis, Modeling, and Forecasting Certification Course aim to equip participants with vital financial modeling skills required in evaluating and managing business performances. The course employs a hands-on and comprehensive approach to providing participants with the essentials of forecasting and financial modeling, analyzing income statements, designing cash flow projections, and applying financial modeling techniques to business applications. The course also covers techniques and methods of financial modeling using Excel and how to utilize modern forecasting tools to evaluate demanding market conditions.

Who Should Attend?

The Financial Analysis, Modeling, and Forecasting Certification Course by Rcademy are designed for various professionals working within the finance industry. The following persons should undertake the course:

• Cost accounting managers: tasked with designing cost standards for labor and materials, developing and executing cost systems on behalf of a company
• Tax auditors: tasked with executing tax audits for public and private bodies and designing tax reports
• Financial accounting managers: responsible for preparing financial forecasts, business activity reports, and annual budgets
• Account managers: responsible for ensuring every department meets the expectation of the customers and clients
• Auditors: responsible for monitoring cash flow and the accounts of an organization to ensure they are correctly recorded and processed
• Commercial managers: charged with boosting a company’s sales and managing client/customer relationships
• Capital analysts: responsible for ensuring the growth and maintenance of investment portfolios and explaining drivers of capital to relevant shareholders
• Investment analysts: charged with performing research and evaluating assets like bonds, commodities, stocks, and currencies
• Planning managers: tasked with monitoring the development of financial plans and applications
• Finance managers: responsible for the overall financial operations of a company
• Risks managers: charged with overseeing the risks of a company, its customers, assets, employees, and stakeholders’ interests

What are the Course Objectives?

The Financial Analysis, Modeling, and Forecasting Certification Course by Rcademy are designed to help participants attain the following objectives:

• Understand the rudiments of financial analysis, modeling, and forecasting and how they are used in financial transactions/calculations
• Learn the various techniques of financial analysis and how to employ each method for a particular financial analysis
• Design effective and practical financials using Excel
• Recognize the different ways financial modeling techniques are used during the investment decision-making process
• Develop financial forecasting models for different business applications
• Enhance their skills in interpreting and evaluating financial statements
• Recognize the roles of forecasting in strategic financial planning
• Learn how to evaluate the three primary financial statements (cash flow statements, balance sheet, and income statement)
• Evaluate financial forecasts through ratio analysis
• Recognize main drivers and variables
• Understand how to utilize future trends in forecasting

How will this Course be Presented?

The contents of this course are participant-oriented and are mainly provided to meet participants’ expectations and enhance their knowledge and skills. Various proven practical approaches and techniques that will ensure constant and active learning by the participants will be used to deliver the course. Professionals will teach the course with various experiences and practices. The course modules are curated from in-depth and extensive research on the subject matter.

The Rcademy Financial Analysis, Modelling, and Forecasting Certification Course incorporate practical and theoretical learning by providing participants with slides on the concept, case studies, lecture notes, and real-life scenarios. Attendees will also be able to partake in quizzes, presentations, seminar workshops, and constant feedback on the lessons learned to confirm their optimal satisfaction.

What are the Topics Covered in this Course?

Module 1: Introduction to Financial Modelling

• Introduction and definition of terms
• Types of financial models
• Objectives of financial modeling
• Use cases
• Competitive modeling
• Qualitative finance
• Corporate finance
• Best and bad practices in financial modeling

Module 2: Mastering Financial Analysis

• Introduction and definition of terms
• Types of financial analysis
• Categories of financial statements

• Techniques of financial analysis
• Financial analysis tools
• Firm-level analysis
• The financial analysis process
• The cost-volume-profit relationship
• Measuring and managing the capital structure and risks
• Measuring and improving asset management efficiency

Module 3: Introduction to Financial Forecasting

• Definition of terms
• Types of financial forecasts
• Financial forecasting techniques
• Objectives of financial forecasts
• Difference between financial forecasting and budgeting
• Designing a financial forecast
  – Forecasting working capital
  – Forecasting revenues
  – Forecasting expenses
  – Forecasting long-term assets and liabilities
  – Forecasting intangibles
  – Forecasting debt schedule
• Designing a forecasted cash flow statement
• Forecasting capital expenditures and depreciation
• Finalising the debt schedule
• Forecasting shareholders’ equity

Module 4: Advanced Excel Functions for Designing Financial Models

• INDEX & MATCH, PMT
• IF statements
• Duplicates and data validation
• SUMIF, VLOOKUP, SUM, SUMIFS

Module 5: Improving Financial Forecasting

• Avoiding common forecasting challenges
• Use of regression and correlation
• Using Excel statistical analysis tools
• Using Excel Solver to reduce forecasting mistakes
• Employing moving averages to evaluate time-series data
• Utilizing linear regression for sales trend analysis
• Cash flow forecasting

Module 6: Financial Models to Enhance Investment Decision-Making

• Sources and cost of business finance
• Business valuation based on shareholder value-added
• Capital investment analysis
• Principles of capital investment decision-making
• Essential of business valuation
• Using Excel discounted cash flow tools

Module 7: Forecast Calculations and Layouts

• Forecasting DPO, DSO, DIO, and other assets and liabilities
• Designing a flexible forecast model using a scenario manager income statement
• Adding forecast period to income statements
• Adding forecast period for the statement of financial position
• Calculating historical percentage ratios

Module 8: Managing Risks and Uncertainty

• Recognizing the key drivers of financial performance
• The Monte Carlo Simulation
• Identifying and evaluating business risks
• Key drivers of the what-if forecast
• Sensitivity analysis and what-if forecasting
• Probability-based approach to decision-making
• Reporting to stakeholders

Module 9: Statement of Financial Position and Income Statement

• Fundamentals of income statements
• Populating the income statement
• Review of source data
• Basics of the statement of financial position
• Objectives of statements of financial position
• Populating the statement of financial position
• Designing the income statement output sheet

Module 10: The Competitive Challenges of the 21st Century

• Trend analysis
• Essentials of business performance management
• Identifying and managing shareholders’/stakeholders’ needs
• An integrated approach to risk management
• Future trends in forecasting
• Business models and how they are disrupted