FAST Financial Modeling (T101) is a 2-day 'in-person' financial modeling course for people who need to build, modify, or run financial models. It teaches the core financial model design and construction techniques that every modeler should know. It is appropriate to financial modelers in the corporate, business modeling, banking, treasury, financial advisory, government and infrastructure sectors.
Each participant will be taught to apply the techniques rigorously, as he or she models a business acquisition case study. All of the calculations required to forecast the three primary financial statements - income, balance sheet, and cash flow are modeled step-by-step, and the target company is valued based upon the present value of forecast dividends.
The course also includes debt financing, inflation indexation, modeling depreciation, and deferred tax. The course de-emphasizes theory in favor of detailed instruction and hands-on practice with good model design and modeling techniques. Pre-course tutorials are made available online to make best use of in-class time.
Part 1. Introducing timing flags and indexation factors through modeling of operating revenues and expenses; purpose of relative anchoring to allow re-use of calculation blocks
Part 2. Setting up primary 'balance corkscrews' via modeling of fixed asset capital expenditure and depreciation and simple term debt interest and principal calculations
Part 3. Review of interim P&L, balance sheet, and cash flow using placeholders and introduction to alternative modeling sign conventions
Part 4. Structured approach to reliable indexation factors; forecast price indices vs. contract reference price levels.
Part 5. Taxation: actual cash tax paid vs. P&L tax charge and deferred tax; simple introduction of concepts Working capital: Accounts receivable and accounts payable
Part 6. Share capital account; calculating profit-constrained dividends.
Part 7. Present value of shareholder distributions as primary DCF valuation methodology; model flexing and wrap-up on ancillary points raised and topics of interest to participants.