Course Methodology
The course is a hands-on workshop that applies MS Excel to model
financial analysis and forecasting through different exercises and case
studies.
Course Objectives
By the end of the course, participants will be able to:
- Use financial ratio analysis to
interpret organizational financial performance and position
- Calculate financial ratios related to the cash
flow statement
- Utilize Microsoft Excel in the time value of money
calculations
- Apply MS Excel modeling tools and functions
such as spinner, list box, option button, etc.
- Forecast and build models for the three main
financial statements
Target Audience
Financial controllers, analysts, finance and accounting managers,
supervisors, and finance professionals who need to interpret and analyze
financial statements and use them to create financial forecast
models in their organizations.
Target Competencies
- Understanding and performing financial analysis
- Performing vertical, horizontal, and trend
analysis
- Financial forecasting
- Modeling financial statements
- Applying Excel functions and tools
Financial Analysis Techniques
- Vertical analysis and strategy
- Horizontal, trend analysis, and growth
- Liquidity analysis:
- Current, quick, and cash ratios, defensive
interval, and cash conversion cycle
- Asset management and activity ratios:
- Total and fixed assets turnover
- Solvency analysis:
- Debt, equity, and times interest earned ratios
- Profitability analysis:
- Profit margin, gross margin, return on assets,
return on equity, EBITDA
- Market and valuation:
- Price earnings and earnings-per-share ratios
- DuPont analysis: The three-step and five-step
models
- Limitation of ratio analysis
Cash flow statement: Interpretation and ratio analysis
- Cash flow categories: Operating, investing, and
financing
- Cash flow pattern; the cash cow
- Cash-flow-related ratios:
- Quality of earnings
- Financial management
- Mandatory cash flow
- Discretionary cash flow
Financial calculations in MS Excel
- Time value of money:
- Present Value (PV) and Net Present Value (NPV)
- Internal Rate of Return (IRR) and Multiple IRR
(MIRR)
- Using XNPV and XIRR
- Effective yields and returns
Model construction techniques using Excel
- Data tables
- Goal seek
- Spinner data modeling
- List box data modeling
- Option box data modeling
Modeling projected financial statements
- Micro and macro factors
- Forecasting sales
- Estimating market demand
- Estimating company demand
- Developing sales forecast
- Forecasting cost of sales
- Forecasting operating expenses
- Forecasting key assets and liabilities accounts
- Modeling the income statement
- Modeling the balance sheet
- Modeling the cash flow statement
