Financial Modelling 1 and 2

Financial Modelling 1

This is an entry level course into Financial modelling, for the more advance financial modelling, scroll down to financial modeling 2 below.

This course will improve your knowledge of finance, accounting, understanding financial statements, financial management, financial analysis and corporate finance.

About the course

This course is designed to help you maximize your understanding of all things finance related in creating stunning reports, generate visuals, transform data for analysis.

Course Schedule: 2 Days

Course Syllabus:

Introduction to Accounting and Finance

• Accounting Equation: Assets = Liabilities + Equity
• Debits and Credits
• Assets – its true corporate meaning ( + = debit, – = credit)
  • Depreciable fixed tangible assets
  • Intangible assets and goodwill
  • Financial assets
  • Deferred tax assets
  • Prepayments
  • Inventory
  • Receivables
  • Cash
• Liabilities – getting it right, corporate finance wise ( – = debit, + = credit)
  • Loans
  • Provisions
  • Employee benefit obligations
  • Payables
  • Tax liabilities
  • Other liabilities
• Equity
  • Share capital
  • Share premium
  • Retained Earnings, cumulative Net Profit (Revenue – Expenses, cumm)
    • Revenue ( – = debit, + = credit)
    • Expenses ( + = debit, – = credit)
  • Reserves ( – = debit, + = credit)

Understanding Internal Financial Reports

• Chart of Accounts (what to debit and what to credit)
  • Assets
  • Liabilities
  • Shareholder’s equity
  • Revenues
  • Expenses
  • Gains
  • Losses
• General Ledger (GL)
• Cost Centres
• Accrual based accounting
  • Depreciation
  • Amortization
  • Interest Expense
  • Prepayments
  • Prepaid/Unearned/Deferred Revenue
  • Tax Computation – accounting tax vs government tax
• Trial Balance – adjusted/accrual based

Understanding Financial Statements

• Income Statement (Statement of Profit or Loss)
  • Functional and practical interpretation
  • Income Statement ratios for company financial health analysis
• Balance Sheet (Statement of Financial Position)
  • Functional and practical interpretation
  • Balance Sheet ratios for company financial health analysis
  • Company Efficiency
  • Working Capital Management
• Cashflow Statement (Statement of Cashflow)
  • Functional and practical interpretation
  • Cashflow Management
  • Free Cashflow
• Investment Decisions
• Financial Planning

Financial Modelling 2

This training will help you learn how to build financial models and perform valuations for startups, businesses, and capital projects. In this training, you learn to create financial models from scratch and apply them in real world situations. The training targets people with accounting backgrounds and basic knowledge of corporate finance.

Course Schedule: 4 Days

Course Syllabus:

1) Introduction to Financial Modeling and Valuation
a. Refresher on the fundamental accounting principles
b. Trial Balance
c. Building the Income Statement from the Trial Balance
d. Building the Balance Sheet Statement from the Trial Balance
e. Building the Cash Flow Statement from the Trial Balance
f. Introduction to Financial Ratios

2) Building a Financial Model Template from Scratch
a. Template Building from Scratch
i. Creating the Required Sheets and Having an Index Sheet
ii. General Model Structure Design
iii. Working Across Multiple Sheets at Once
iv. Linking Sheets
v. Absolute and Relative References
vi. Template Building Tricks
b. Required Excel Tools and Formulas

3) The Financial Model Core
a. Modelling Stage One: Projection Ratios and Scenarios (Optimistic, Base and Pessimistic)
i. Income Statement Drivers Projections – from schedules or moving average
ii. Balance Sheet Drivers Projections – from schedules or moving average
b. Modelling Stage Two: Financial Statements Forecasts
i. Income Statement Forecast
ii. Balance Sheet Forecast
iii. Cashflow Statement Forecast – extracting the Cashflow from Income Statement & Balance Sheet
iv. Extracting the Unlevered Free Cashflow

4) Different Types of Valuation Models
a. Discounted Cash Flow (DCF) Model
b. Comparative Company Analysis (comps) Model (and precedent transaction valuation multiples)
c. Sum-of-the-parts Model
d. Leveraged Buy Out (LBO) Model
e. Merger and Acquisition (M&A) Model
f. Book value Model
g. Depreciated Replacement Cost (DRC)
h. Dividend Discount Model

5) DCF Valuation 
a. Enterprise Value = Discounted Cashflow of Explicit Forecast Period + Discounted Terminal Value
b. Calculation of WACC, CAPM and Cost of Debt
c. Practical Reality of the Nigerian Economic Space
d. Extracting The Equity Value from The Enterprise Value
e. Sensitivity Analysis: WACC vs Perpetuity growth
f. Practical Use of The Results
g. Company Valuation: Sell-side, Buy-side and Advisory
h. Business Unit or Subsidiary Valuation
i. Capital Project Valuation

6) Financial Ratios 
a. Liquidity Ratios
b. Asset Management Ratios
c. Leverage Ratios
d. Profitability Ratios
e. Valuation Ratios
f. Financial Project Planning Excel formulas