Financial Modeling in Excel (3 days)

£1,950.00 (excluding tax)
*Excel version:

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Start Date(s):

What To Bring

It is important that you bring a laptop (preferably a PC) with Microsoft Excel (please supply your Excel version in the field above), Word, PowerPoint and Adobe Reader installed.


Day 3 - A solid understanding of financial statement accounting, ideally through our Financial Statement Analysis courses.

Day 4 - A solid understanding of financial statement accounting. This day builds on the learning from day 3 but you are not required to have attended the previous days.

Day 5 - Building on days 3 and 4. A solid understanding of financial statement accounting and modeling using a template is required in order to maximize the learning benefits.

Day 3 - Financial Modeling Fundamentals

Participants will learn how to model and integrate the income statement, balance sheet and cash flow of a fast food business using Excel. In addition to learning the steps necessary to build a three statement financial model, participants will also cover how to build models accurately and efficiently through a series of best practice modeling rules. Participants also learn how to stress-test the assumptions used, to check their work efficiently and to document it.

Key Topics

  • Using keyboard shortcuts
  • Setting Excel up for maximum efficiency
  • Working with key modeling formulas and structures
  • Building 3-statement projections
  • Modeling cash and revolver
  • Addressing standards for good models
  • Constructing the income statement, balance sheet and cash flow statement
  • Introduction to checking methodologies
  • Performing audit trails
  • Incorporating interest income and expense

Day 3 - Three Statement Modeling

Through the process of building a more complex three statement model, participants are taught how to model operating cash and calculate interest using average debt and average cash balances. The class will address in detail how to work with intentional circular references. The issue of non-intentional circular references is covered and participants are taught modeling rules that are designed to help avoid them. The session is designed to expose participants to different three statement modeling styles: multi-sheet, tower, and different income statement layouts. Exposure to a mix of modeling styles will help prepare them to work on in-house models or models they may inherit from other finance professionals.

Key Topics

  • Modeling operating cash, excess cash and the revolver
  • Calculating interest on cash and debt balances
  • Working with intentional circular references
  • Avoiding non-intentional circular references
  • Building models with different styles and layouts
  • Calculating ratios

Day 4 - Financial Modeling and Forecasting

Participants will learn how to build a three statement model using a detailed revenue forecast with price and volume drivers. A full debt schedule, including a cash sweep, is incorporated into the model. In addition to the main class case model, participants are given exercises to help them understand more complex modeling issues (for example, detailed depreciation schedules and working capital items). Common errors are covered from balancing a non-balancing balance sheet to debugging a model that is non-intentionally circular.

Key Topics

  • Complex 3 statement models
  • Modeling a detailed revenue forecast
  • Modeling a cash sweep
  • Modeling a detailed debt schedule include a cash sweep
  • Consolidating and re-applying knowledge of circularity, iteration, and a toggle switch
  • Building cash flow statements from scratch
  • Troubleshooting techniques for cash flow statements
  • Finding errors and integrity checking

Day 4 - Integrity and Error Checking

Common errors are covered from balancing a non-balancing balance sheet to debugging a model that is non-intentionally circular.

Key Topics

  • Troubleshooting techniques for cash flow statements
  • Finding errors and integrity checking
  • Using Excel tools to help with integrity checking
  • Finding unidentified hard numbers quickly and easily
  • Using Excel’s “Jump tool” to trace through formulas with ease
  • Using Excel to show the formulas underlying output
  • Using Excel to find inconsistencies in the model
  • Using Excel’s auditing tool to trace formulas

Day 5 - Financial Modeling from Scratch

Participants start with an Excel worksheet with two years of historicals of the main case company pre-inputted. The financial statements of the case company are then analyzed, and the latest historical data is cleaned and prepared for the forecasting process. Ratios are calculated and assumptions for each line item in the financial statements are created. The full forecast model is then built. The forecasting techniques for several different items are examined separately, using dedicated Excel files, before being adapted for the case company.

Key Topics

  • Identifying relevant information in the company’s financial statements, management discussion and analysis, and notes
  • Adjusting historical performance for acquisitions and divestitures
  • Analyzing and making reasonable projections for a company’s operating costs, non-recurring items, and other income and expense
  • Creating assumptions and forecasting balance sheet accounts
  • Revenues and costs
  • Fixed assets - capital expenditure and depreciation
  • Intangible assets
  • Operating working capital
  • Provisions
  • Effective tax rate, taxes payable and the various deferred tax items
  • Debt schedule
  • Equity and share repurchases
  • Building a cash flow statement from scratch
  • Documentation techniques and ratio analysis
  • Integrity checking

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