Techniques for Financial Modelling


Financial Modelling is an essential tool for Bankers, Fund Managers, Investment Analysts, Dealers, Accountants and many executives in Financial Services and other industries. It requires much more than a knowledge of Excel. The critical variables need to be identified and their impact assessed before modelling can be considered. On the course these variables are assumed to have been already identified and used to build the model. By running sensitivities and/or creating different scenarios, the model will then be used to identify the effects of changes in these critical variables so that investment decisions may be made.


This 3-day course is designed to cover the techniques necessary to build Financial  Models assuming limited previous knowledge and using an example company. At the end of the course delegates will be able to build and amend models:

        with greater speed and efficiency

        that are robust and accurate.

Starting from an almost blank Excel spread sheet and after each demonstration, delegates will build the model for themselves over the two days. Each exercise therefore reinforces and builds on the previous demonstration and learning experience.



Delegates are assumed to have a basic understanding of:

        Accounting: an basic understanding of the main accounting statements (Balance Sheet/Financial Position, Profit & Loss/Income Statement and Cashflow)

        Finance: an understanding of discounted cash flow ie how NPV and IRR are calculated.

        Excel: data entry, constructing simple formulae and keyboard layout familiarity.


Who should attend?



        Fund Managers


        Other professionals interested in learning how to build Financial Models.


There is limit of 8 participants on the course to ensure maximum personal benefit.



Introduction to the course

-           Objectives                                                                                                                                    

 -          Keyboard short-cuts

-           Output design

-           Range Names

-           Model structure



-           Using Range Names and Short-cuts

-           Left to Right consistency


Working capital

-           Avoiding long formulas

-           Opening and closing balances (Corkscrews)


Retained earnings/Net cash balance/Audit checks

-           Temporary calculations

-           Audit sheet

-           Agreeing basic audit checks


Cash and Overdraft

-          MIN and MAX functions


Peak Values

-          INDEX and MATCH functions


Property Plant and Equipment/Fixed Assets

-           Capital expenditure

-           Declining balance and Straight line depreciation

-           Net book value


Cash and Overdraft interest

-          Modelling circularities using a Switch


Senior debt

-           Principal

-           Interest


Interest totals


Taxation impact

-           Tax losses

-           Tax payable and paid



-           Share capital

-           Dividends based on cash/earnings available


Cash cascade or waterfall

-          Cash available/priorities


Enterprise/Equity value

-           Free cash flows

-           NPV function


Model Review and Audit

-           Audit sheet

-           Checking the model

Model completion

-           Formatting

-           Sensitivities

-           Graphs



-          Using the CHOOSE function


Todays Date:

Duration 3 days
Available as an in-house course. Details on request.

Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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