* All fees are exclusive of vat ** PREMIUM - Customize your learning experience
A thorough grasp of the principles of financial analysis is a key competency needed for effective management of a business. This 5-day interactive program goes far beyond the typical financial analysis program. It uses both the principles of analysis and the power of Excel to identify the strategic drivers that can dramatically enhance the shareholder value of your organization.
What Do Participants Learn?
• Identify the key steps in developing a financial model • Analyze 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 • Learn how to use Excel tools such as Solver, Goal Seeker, and Scenario
Who Should Attend?
• All financial professionals • Financial management • Department heads • Internal auditors • Project professionals • Sales and marketing professionals • and anyone who needs to understand the short and long-term financial impact of key decisions
What Will the Learning Experience Include?
Comprehensive pre-program activities include:
Web-based information forms & surveys completed by attendee.
Direct consultation with the attendee about the expectations.
During the training, participants engage in data, activities, and conversations that lead to insight and knowledge.
Participants learn from expert trainers who have both academic and business experiences.
Highly applicable training content & instructive activities for adding depth to training topics.
**A half-day site visit for integrating the experience & plan next steps. Opportunities to provide connections, ideas & support.
Explore & Practice
Apply & sustain the learning experience by using this ongoing support:
To ensure participant has new skills or behavior progress.
Optional, fee-based mentoring & coaching with the trainer.
Training materials & additional documents (e-books, pdf files, presentations and articles)
Evaluate your training experience by giving us feedbacks and help us to reach our organizational goals.
Section One: Introduction and overview of Financial Modeling and the International Business Environment
• Define the Terms Model and Financial Model • Learn the 10 steps to create good Financial Models • Use Flow-charting 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
Section Two: Analyzing 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 • 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) • Impact of Acquisitions on WACC
Section Three: 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 • Use Excel, to 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 • Identification of Forecast Validation Criterion • Determination of Model and Forecast Horizons • The recognition of risk in forecasts • The Role of Assumptions in Financial Forecasting
Section Four: Evaluating Capital Project Proposals and Effective Management of Historical Data Using Excel®
• 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 • 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 Modeling Techniques
Section Five: 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 • 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 • Use Excel to determine the beta of listed share on a securities market