This document discusses financial modeling, including what it is, its uses and examples, types of financial models, and career opportunities. Financial modeling is creating spreadsheets to forecast financial performance and determine outcomes under different assumptions. Common types include 3-statement, discounted cash flow, and M&A models. Careers include financial analyst, manager, and research roles.
This document discusses financial modeling, including what it is, its uses and examples, types of financial models, and career opportunities. Financial modeling is creating spreadsheets to forecast financial performance and determine outcomes under different assumptions. Common types include 3-statement, discounted cash flow, and M&A models. Careers include financial analyst, manager, and research roles.
This document discusses financial modeling, including what it is, its uses and examples, types of financial models, and career opportunities. Financial modeling is creating spreadsheets to forecast financial performance and determine outcomes under different assumptions. Common types include 3-statement, discounted cash flow, and M&A models. Careers include financial analyst, manager, and research roles.
This document discusses financial modeling, including what it is, its uses and examples, types of financial models, and career opportunities. Financial modeling is creating spreadsheets to forecast financial performance and determine outcomes under different assumptions. Common types include 3-statement, discounted cash flow, and M&A models. Careers include financial analyst, manager, and research roles.
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FINANCIAL MODELING
Lecture 1 Syllabus & Content • Understand Financial Modeling • What is Financial Model • Uses & Examples of Financial Model • Types of Financial Models • Career Opportunities in Financial Modeling • Takeaways • What Is Financial Modelling? • Financial modelling is a tool for determining likely financial outcomes based on a company’s historical performance and assumptions about future revenue, expenses and other variables. Financial modelling relies on financial forecasts: It takes a forecast’s assumptions and plays them out using a company’s financial statements to show how those statements may look in the future. Because models are created from financial statements, they most often generate results for a month, quarter or year. • Most financial models are constructed in an Excel spreadsheet and require manual data entry. One of the simplest types, known as the three-statement model, only requires an income statement, balance sheet, cash flow statement and supporting schedules. However, the uses for models vary greatly, so some are much more complex. Businesses routinely customize models for their own purposes. What Is a Financial Model Used for?
• Financial models are useful for many
applications. Businesses commonly use them for: • Valuations and raising capital. If you’re aiming to go public, for example, bankers will run financial models to determine how much the company is worth. You might also need to provide models in order to get venture capital funding, loans or other types of financing. • Budgeting and forecasting. Budget and forecasting models help finance understand the company’s performance based on input from its various components. As each program, department and business unit creates its own budget, they can then roll them up into a single overall financial model for the entire business to be used to allocate resources and predict financial results for the coming year. • Measuring possible outcomes of management decisions. You might use a financial model to predict changes in revenue if you were to, say, raise the price of your top- selling product next year. • Credit analysis. Investors will use financial models to determine the likelihood of your business repaying its debts, if they are to lend you funds. Who Uses Financial Models?
• Financial Modeling are widely used in Various
Sectors like: • Investment Banks • Credit Rating Agencies • Equity Research • Mutual Funds • Financial KPOs • Project Finance companies. What Are Some Examples of Financial Models?
• The forms of financial models vary as widely as their
functions. For instance, the three-statement model mentioned earlier is the most basic variation. It simply takes previous financial statements and projects them into the future. It provides a complete overview of the company’s past, present and future and has the added benefit of allowing you to see what would happen if you changed some assumptions. For instance, what would happen if we sold 200 more units? Or, what if we reduced our labor costs by 12%? • Another example of a financial model is the discounted cash flow model. To determine valuation for an entire company or a particular project or investment, many analysts would use this model to provide the current value of the company and predict future performance. Example of Bakery • To get a better picture of a financial model in use, imagine a bakery is acquiring a candy company. The bakery could use a complex financial model for mergers and acquisitions to add the valuation of both companies together and present the new valuation of the combined entity. • When pitching to an investor, your company might prepare models that demonstrate the growth investors could expect to see based on your company’s projected sales or improvements in overhead due to economies of scale. • Or, if your print shop is seeking to build a new store with financing from a loan, the bank will use models to determine your company’s creditworthiness and the likelihood that your new location will be successful. Types of Financial Models • The most fundamental financial models consist of the following: • 3-Statement Financial Model • Discounted Cash Flow (DCF) Model • Accretion/Dilution M&A Model • Comparable Company Analysis • Precedent Transactions Analysis • Leveraged Buyout (LBO) Model Career opportunities:
• Financial Modeling is the main component of
business decision-making program. The Financial model allows corporate industries to explore the outcome under different scenarios. • Some of the skills/areas that you can learn and work in after pursuing financial modeling are: Career Opportunities • There are various jobs available after learning Financial Modeling course from a reputed Institute. There is a huge demand of finance professionals having such necessary skill sets. With the proper skill, experience, network, education and knowledge you can expect good offers from companies. There is a wide range of roles and opportunities available after the completion of Financial Modeling course. You can work as a – • Financial Analyst • Financial Manager • Business Analyst • Market Research Analyst • Associate Analyst • Equity Analyst Takeaways • In the finance industry, the value of financial modelling is increasing rapidly. • Financial modelling acts as an important tool which enables business ideas and risks to be estimated in a cost-effective way. • Financial modelling is an action of creating attractive representation of a financial situation of company. • Financial Models are mathematical terms aimed at representing the economic performance of a business entity.
جدول سيولة الخزينة وفق النظام المحاسبي المالي الجديد رؤية تحليلية ديناميكية للمؤسسات الاقتصادية الجزائرية the Statement of Cash Flows According to the New Financial Accounting System a Dynamic Analytical Vision of Alg
جدول سيولة الخزينة وفق النظام المحاسبي المالي الجديد رؤية تحليلية ديناميكية للمؤسسات الاقتصادية الجزائرية the Statement of Cash Flows According to the New Financial Accounting System a Dynamic Analytical Vision of Alg
