Building a Financial Model from Scratch

Description

AMT Training has a new home!

In 2021, AMT Training joined Training The Street

The new global standard in financial modeling and valuation training
We have expanded our product offering by combining our content libraries with Training The Street. You can find your training solutions for corporate, Public Courses, and self-study all in one place.

Who should attend the course?

• New hires who have joined the firm late and missed the in-house program
• Individuals looking to fill a knowledge gap
• Experienced bankers looking to refresh their technical skills
• Teams employed in financial strategy roles from non-banking corporations
• Graduates preparing to interview for a role in the finance sector
• Students at business school and looking for a career in finance

What you will learn

Financial Modeling - From Scratch

This session teaches participants how to build a three statement forecast model starting from a blank Excel spreadsheet. We begin by setting up a roadmap to guide us through the modelling process and then we proceed to build up a model template which we populate with historical financial information drawn from the case company’s financial statements. We analyse the company’s historical data by calculating financial ratios, which are then utilized as a basis to set the assumptions driving the financial forecasts. The full forecast model, comprising income statement, balance sheet and cash flow statement, is then built. As we build the model, we examine various forecasting techniques for the key elements of the financial statements. Once the model is complete, we test its integrity and we sanity-check the financial forecasts.

Learning outcomes:

• Identifying relevant information in the company’s financial statements, management discussion and analysis, and notes
• Isolating historical non-recurring income and expenses
• Forecasting techniques
• Revenues and operating costs
• Operating working capital
• Fixed assets - capital expenditure and depreciation
• Intangible assets
• Provisions
• Effective tax rate, taxes payable and the various deferred tax items
• Debt schedule
• Equity and share repurchases
• Balancing accounts (balance sheet plugs)
• Building a cash flow statement from scratch
• Documentation techniques
• Integrity checking
• Sanity-checking the financial forecasts