Financial Analysis Modeling and Forecasting

Overview:

Introduction:

This training program teaches advanced techniques for analyzing data, building models, and forecasting financial performance. It empowers participants to make informed decisions and strategic plans.

Program Objectives:

At the end of this ptogram, participant will be able to:

• To interpret corporate financial performance and position, use financial ratio analysis.

• Calculate the cash flow statement's financial ratios.

• Calculate the time value of money using Microsoft Excel.

• Utilize the spinner, list box, option button, and other modeling tools and functionalities in MS Excel.

• Create models and forecasts for the three primary financial statements.

Targeted Audience:

• Financial controllers.

• Analysts.

• Finance.

• 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.

Program Outline:

Unit 1:

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.

Unit 2:

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.

Unit 3:

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.

Unit 4:

Model construction techniques using Excel:

• Data tables.

• Goal seek.

• Spinner data modeling.

• List box data modeling.

• Option box data modeling.

Unit 5:

Modeling projected financial statements:

• Micro and macro factors.

• Forecasting sales: Estimating market demand, Estimating company demand, and Developing sales forecast.

• Forecasting cost of sales.

• Forecasting operating expenses.

• Forecasting key assets and liabilities accounts.

• Modeling the income statement, the balance sheet, and the cash flow statement.