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Financial modeling helps us to analyze overall financial health of a company. In the current technology age, financial modeling has become the buzz word and automation is the key in today’s fast paced corporate world. With the numbers becoming complex, financial modeling has become time consuming, monotonous and exhaustive. With the use of computer software, you can do large complex calculations within fraction of seconds. You just have to click a button on the computer screen and it’s all done! But it is not that simple. It takes a lot of effort and time to build one such financial model to work on. You have to understand the basic concepts of finance, financial modeling; and, at the same time you have to be well versed with the software. You need to learn the relevant commands, functions and algorithm in excel.
What is Financial Modeling?
Financial modeling is designed to represent the financial portfolio of a firm, project, assignment or any other investment or performance of the financial assets of a firm. The model consists of performing various calculations about historic data and making recommendations for future actions. It helps summarize specific events of the company for the end user to take decisions regarding future plan of action and deciding alternatives. It is the task of building a model or an abstract representation of a real world financial situation. In simple terms, Financial Modeling is interpreting the historical data to make future decisions.
What is the process of Financial Modeling?
You need to understand the process of financial modeling before learning to use excel for the same. The aim of financial modeling is to evaluate risk for various purposes. So it should be focused on key cash-flow drivers. It must convey the assumptions and conclusions related to the financial health of the firm. The process of financial modeling is as follows.
- Financial information about the company is gathered and its performance is analyzed using various financial parameters.
- This analysis is useful in building financial model for the company which is inevitable for projecting future financial performance of the company.
- On the basis of this financial model, companies and investors can evaluate the company.
- This financial analysis is very useful in various investment areas such as equity research and banking industry that assist equity research firms, project finance, financial advisory firms and investment bankers to make correct financial decisions.
What are the advantages of using excel for Financial Modeling?
You can take your business and career to a higher level with the help of accurate and robust financial models. Nowadays everyone communicates through Excel language in the corporate world and you are also expected to be skilled and updated in this field. Microsoft Excel has become the first and foremost choice of finance professionals to carry out finance research activities. The financial model building process involves many interrelated calculations. Excel offers various user friendly financial analytical tools to make this process easier. Financial modeling process is made manageable using exceptional features of excel. Excel identifies and tracks all the linkage points involved in the calculations across the financial modeling process. Excel enables the user to test assumptions underlying financial models. Also it makes convenient for the user to run accurate sensitivity analysis. Professionals can share, distribute and consolidate the financial models with ease.
The basic tools used for financial modeling include common size financial statements, trend and pattern analysis, analysis of various ratios and industrial comparatives. Excel is used for such lengthy and complex calculations to avoid any calculation mistakes. Excel is used to interlink the formulas wherever required. So when the input changes, the result or the outcome will also change automatically. It reduces hassles at every stage of calculations.
This Financial Modeling using excel course gives you an overview of Financial Modeling. It focuses on calculations, assumptions, projections and applications of financial modeling. The course is divided in two sections. Each of these modules in the Financial Modeling using Excel course provides in-depth knowledge of the concepts.
- Financial Modeling using excel – An overview – This is an introductory section where you understand what is meant by financial modeling and the objective of the course.
- Financial Modeling using excel – This section is the main part of the course which deals with various aspects of financial modeling and the use of excel to complete the task. In this section, you will gain understanding about the procedure to prepare a financial model from scratch using excel.
- You will also be learning about major financial statements, diagrams, charts and their interpretation with the help of a case study.
- The case study makes you understand about schedules, how they are used to analyze the financial statements and to forecast the financial health of the company.
- The tutorial is designed to help you build an advanced financial model (step by step guide), understand the key links of Income statement, balance sheet and cash flow statement.
- The aim of the course is to make you understand the financial statements of a company, analyzing the same, forecasting and projecting the future financial decisions for the company.
What are the requirements / pre-requisites to learn Financial Modeling using Excel?
There is no pre learning required to learn financial modeling course. This unique Financial Modeling using excel course from eduCBA starts from the scratch and is easy to understand. If you want to upgrade your skills or want to make your career in financial management field, this is the right course for you. Though sound understanding of basic finance and accounting concepts, could be advantageous to learn the course. If you have already learnt financial fundamental concepts, terminology, valuation concepts, general business procedures, the course is easy to learn. If you know how to use basic excel functions, it could be added advantage.
Don’t get disappointed if you don’t know any (or a few things) of the above mentioned things. The course starts from scratch and covers all the basics of financial modeling and MS Excel in detail.
Who should attend this online financial modeling using excel course?
eduCBA brings a comprehensive course in Financial Modeling using Excel for your career enhancement. No matter if you are an Equity Research Analyst or an experienced Investment Banker, or a fresher in the financial market searching for a job. The course is completely suitable for everyone who wants to understand the financial modeling in depth and understand the mechanics of company valuation with the help of the latest technology (Excel). In this course you will learn in detail about financial modeling using excel with the help of a case study. You must take this course if you want to demonstrate superior excel skills at work from day one. The course is ideal for professionals, students, financial analysts, researchers and managers. You can also consider many career options after learning it thoroughly.
- This unique course is suitable for people in banking, business planning and strategy, commercial banks, equity research, project management, investment banking, equity research, private finance companies, accountants, portfolio managers, risk managers and all those who are or want to be a part of finance department in any kind of organisation.
- This course is ideal for you if you are pursuing CFA, MBA Finance, CA, FRM or any other financial management related course.
- This course is for everyone who wants to get involved in finance related decision making or professionals wants to explore the finance world.
- This course is very useful to any graduate (degree, diploma, B. Tech or engineering) who wants to make their career in finance.
- This course is for any individual who wants to learn it out of curiosity or for management of personal wealth.
FAQs – General Questions
- Is it difficult to learn Financial Modeling using Excel?
Absolutely not. This Financial Modeling using excel course from eduCBA is not at all difficult to learn. It is a comprehensive course for finance management professionals, students and individuals. Financial modeling is an age old concept; using Excel is an added advantage. Excel is accurate, user friendly, fast and easy to understand. Our course is designed to make you understand the concept step by step. It will help you learn the financial modeling process from scratch with the help of study materials, tutorials and HD videos.
- Where can I make use of the results derived from financial modeling?
Financial modeling is very useful in many aspects of day to day business and business expansion. It is most used technique to evaluate firms, IPOs and FPOs. With the help of financial modeling, you can make decisions regarding:
- The requirement of additional debt or equity funds
- The cost of debt and equity funds
- Understanding and analyzing various risk levels affecting business finance
- It helps to do comparative analysis to make investment decisions(are the returns worth the risk or not)
- You can predict how the business will react to change in market condition or financial situation
- It helps understand and analyze the reasons for the change in company profits (loss of customers, expansion policies, etc)
- It helps make strategies and business plans
Career Benefits of financial modeling using excel course
It really doesn’t matter if you are an experienced finance professional or a new entrant in the market; you need to use Microsoft Excel throughout your career. It is a key skill required for most finance jobs. It is essential in decision making in several finance and non finance areas within finance, banking industry and corporate. This unique course from eduCBA prepares you for various career roles in core finance field. It opens many new career options for you.
You can make your career in the following areas: Business Analysis, Equity Research, Private Equity, Credit Rating, Project Finance, Financial Analysis, Venture Capital, IPO Analysis, Investment Banking, Corporate Finance and Mergers & Acquisitions.
- Investment banking: Investment bankers take help of financial models to analyze the viability of any merger and acquisition deal.
- Project finance: Financial modeling is used to forecast the cash flow of a project.
- Corporate finance: It is used to identify the overall financial health of a company.
- Equity Research: Multiple financial models are used to predict financial and stock market performance of a firm.
- Venture Capital: Financial modeling is used to determine the ROI for a certain period of time and amount.
- Corporate: Firms use financial modeling for their internal growth projections.
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What are the differences between these courses? - FM with MS Excel - FM Using Excel Online Training - FM Using Excel - FM with Microsoft Excel
Hello Robert, There's no difference among the courses. It'd all be the same. This is only for those users who are looking Keyword Like FM and MS Excel. ThanksThis was helpful. Thank you for your feedback.
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