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
Financial Modeling - Fundamentals Part 1
This session teaches participants how to build a three statement integrated financial model, comprising income statement, balance sheet and cash flow statement. Best-practice modelling techniques are demonstrated, to ensure maximum accuracy and efficiency. Participants also learn how to stress-test the assumptions used, to check the model for mistakes and to document it. This session uses simplified teaching models as well as a real company forecast model.
- Setting Excel up for maximum efficiency
- Best-practice keyboard shortcuts for modelling
- Key modeling formulas
- Alternative model layouts
- Structure of an integrated three statement forecast model
- Constructing the income statement, balance sheet and cash flow statement
- Balancing the forecast balance sheet using cash and revolver
- Incorporating interest income and expense
- Introduction to checking methodologies
- Performing audit trails
Financial Modeling - Fundamentals Part 2
Using a real company forecast model, we start the session by reviewing the structure and key components of an integrated three statement forecast model. We then focus on modeling operating cash (required cash) and separating it from excess cash. We then teach participants how to build a forecast cash flow statement from scratch, using income statement and balance sheet inputs. The last part of this session focuses on interest calculations and circularities, where we teach participants the difference between using beginning, ending or average debt/cash balances and how to work safely and effectively with or without circular formulae in a model.
- Review of the structure and key components of a forecast model
- Review of the modelling steps to build a three statement integrated model
- Modeling operating cash (require cash) and excess cash
- Building a forecast cash flow statement from scratch
- Links to forecast income statement and balance sheet
- The 4 rules of cash
- Calculating the balance sheet plugs (cash and revolver)
- Calculating interest on cash and debt balances
- Using beginning, ending or average balances
- What is a circular formula?
- Working with intentional circular references
- Excel settings
- How does the iterative process work?
- Building and using circularity switches
- Avoiding non-intentional circular references
Financial Modeling - Cash Sweep
this session we build a three statement operating model for a real company, which incorporates a detailed revenue forecast based on price and volume drivers. We set up a hierarchy of a series of debt items and we learn how to model the sequential debt paydown using a ‘cash sweep’ approach. Best practice modeling techniques are emphasized throughout.
- Building a detailed debt schedule
- The waterfall of debt repayments
- Building a simple cash sweep
- Modeling revolver
- Modeling a price/volume revenue forecast
Financial Modeling - Troubleshooting
This session covers a range of error-checking techniques to find and correct the most common errors found in financial models. We use a series of financial models to allow participants to practice error-checking.
- Stabilizing a model
- Making a model map
- Sanity checking a model
- Fixing a non-balancing balance sheet
- Troubleshooting techniques for cash flow statements
- Checking the model’s matrix
- Finding unidentified hard numbers
- Using Excel’s ‘Jump tool’ to trace through formulas with ease
- Using Excel to show the formulas underlying output
- Using Excel’s auditing tool to trace formulas
"I thought the public course structure was excellent as it flowed seamlessly from topic to topic. The trainer used real world examples, which really helped my understanding of complex subject matter." ~ finance analyst, global investment bank
View video to get a flavour of the course
While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:
- printed course binder with copy of the slides
- laminated summary sheets
- 24/7 access to DELTA online learning environment
- class recordings
- course notes
- electronic homework/study files
A good understanding of basic accounting transactions and the relationship between the three financial statements.
This course is non-residential. The venue will provide light refreshments. AMT reserve the right to cancel or postpone sessions or change content if registrations are insufficient to continue 2 weeks prior to scheduled commencement date. Registrants will be given at least 5 business days’ notice of such changes.