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Objectives

• On completion of this course , delegates will be able to:
• Identify the key steps in developing a financial model .
• Analise a company’s annual report identifying key performance indicators in order to understand what the numbers are really saying and make projections of future performance
• Understand the theory of interest and the time value of money and their applications
• Develop an Economic Value-Added model to see the organization from the shareholders’ perspective
• Project the benefit of Capital Investment
• Evaluate their firm’s financial performance
• Understand and use analytical tools and techniques in practical case-study situations.
• Use analytical techniques to project future performance.
• Make critical judgements of accounting systems when evaluating company performance
• Appreciate the importance of new investments in maintaining growth and competitiveness.
• Improve their management skills and increase their value to the organization.

The Delegates

• All financial professionals
• Financial management
• Department heads
• Internal auditors
• Project professionals
• Sales and marketing professionals
• R&D professionals
• Anyone who needs to understand the short and long-term financial impact of key decisions .

The Contents

• Introduction and overview of Financial Modelling and the International Business Environment :
• Define the Terms Model and Financial Model
• Learn the 10 steps to create good Financial Models
• Use Flowcharting Techniques to improve your model
• Overview of the strategic and operational aspects of a global business entity
• The Organizational Planning Model
• The Product/Decision/Information Cycle
• The Objectives of Financial Analysis
• Creating wealth by adding value
• Basic metrics of wealth creation and financial performance
• Analysing the Annual Report and Creating Shareholder Value :
• Ratio Analysis – The heart of Financial Analysis
• Use Excel® templates to calculate and interpret liquidity, leverage and profitability ratios
• Interpret the results of ratio analysis from an accrual accounting perspective
• The inter-relationship between the DuPont Formula and EVA®
• How to use the Altman Z-Score
• Use various investment surveys to benchmark the results of financial analysis
• What constitutes “Shareholder Value?”
• Finding the cost of equity
• Determine the Cost of Debt, Preferred Equity and Common Equity
• Calculate Weighted Average Cost of Capital (WACC)
• Develop the EVA Model
• The Time Value of Money and the Steps in Building Financial Models :
• The impact time has on the value of money
• Understand the various interest calculations
• Using WACC and ROIC as benchmarks
• Determine Present Value, Future Value, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return
• Using IRR as a basis for capital project evaluation
• Situations that require models
• Models and Shareholder Value (EVA®)
• Identification of Forecast Validation Criterion
• Determination of Model and Forecast Horizons
• The recognition of risk in forecasts
• The Role of Assumptions in Financial Forecasting
• Evaluating Capital Project Proposals and Effective Management of Historical Data :
• Identify the various types of capital projects
• Discuss the capital project evaluation process
• Determining the initial and subsequent capital project cash flows
• Development of the “Hurdle Rate” for capital projects
• Discuss the use of “Terminal Value” in evaluating capital projects
• Use Excel® to evaluate capital projects by applying NPV, IRR, and Discounted Payback models
• Understanding the Approaches Used to Build Financial Forecasting Models
• Recognizing the Basic Patterns Inherent in Historical Data
• Using the Exploratory Data Analysis Tools Available in Excel®
• Key Factors in Determining the Proper Time Horizon to Choose for Your Model
• Determining Degrees of Reliability in Model Projections
• Selecting the Degree of Robustness and Sensitivity of the Model
• Understanding and Applying Selected Modelling Techniques
• Use of Time Series Analysis and Evaluating Investment Portfolio’s
• Development of Time Series Models using histograms, moving averages, exponential smoothing, and regression analysis
• Mastering the use of Exponential Smoothing as a Data Analysis tool
• Validation of Time Series Analysis
• Appreciate the Meaning and Importance of Sensitivity Analysis
• Developing “What-if” Scenarios in Your Financial or Operational Models
• Using the Excel tools “Scenario and Goal Seek”
• Principles of risk measurement in individual shares
• Graphing expected return and risk using variance analysis
• Modern portfolio theory using the capital asset pricing model
• Managing a balanced portfolio
• Determine the beta of listed share on a securities market

Course summary.

The Discount

0% in case of Three P. (or more)