Financial Modelling

Program Dates: 22nd January - 12th February 2021 The Financial Modelling course reviews the basic structure of accounting statements and uses the annual reports of an ASX-listed company to create a three-way financial statement model, forecasting the income statement, balance sheet and cash flow statement. Learning Outcomes • Read an income statement, balance sheet and cash flow statement and understand the linkages between each statement. • Understand how business events – such as sales, purchases and investments are reflected on the financial statements and forecasted results. • Develop Excel modelling skills to build a financial model with multiple scenarios. • Consider different forecasting techniques and their appropriate use in different industries • Create a robust financial model that includes checks and error reconciliation • Consider different techniques for resolving the finance cost circularity inherent in financial statement models. • Extract cash flow information from a model in order to determine enterprise valuation and equity values. Key Topics • Overview of the financial statements • Forecasting sales and costs • Modelling the Income Statement, Cash Flow Statement and Balance Sheet • Building a fixed assets schedule and modelling depreciation • Managing finance costs and the circular reference • Using cash flow forecasts for evaluation Activities • Develop Excel modelling skills to build a financial model with multiple scenarios • Create a robust financial model that includes checks and error reconciliation • Extract cash flow information from a model in order to determine enterprise valuation and equity values • Consider different forecasting techniques and their appropriate use in different industries