Financial Forecasting and Modelling

OVERVIEW

A thorough grasp of the principles of financial analysis is a key competency needed for effective management of a business. This 3-day interactive seminar goes far beyond the typical financial analysis program. It uses both the principles of analysis and the power of Excel® to identify the strategic drivers that can dramatically enhance the shareholder value of your organization. Using Excel®, delegates will:

• Develop the basics of strategic financial planning
• Apply the latest financial analysis techniques
• Use the tools of finance, such as the time value of money
• Determine key performance indicators to manage the drivers of business success
• Create tools to use within their own business

OBJECTIVES

By the end of this training course, participants will be able to:

• Identify the key steps in developing a financial model
• Analyze a company’s annual report identifying key performance indicators to understand what the numbers are saying and make projections of future performance
• Understand the theory of interest and the time value of money and their applications
• Develop an Economic Value-Added model to see the organization from the shareholders’ perspective
• Project the benefit of Capital Investment
• Learn how to use Excel tools

TARGET PARTICIPANTS

• All financial professionals
• Financial management
• Department heads
• Internal auditors
• Project professionals
• Sales and marketing professionals
• R&D professionals
• And anyone who needs to understand the short and long-term financial impact of key decisions

COURSE CONTENTS

1. FORECASTING MODELS

·  Qualitative models

·  Market research approach

·  Delphi method technique

·  Quantitative models

·      The indicator approach

·      Causal models

·             Econometric models

·             Regression analysis: simple and multiple

·             Correlation coefficient and coefficient of determination

·  Time series methods

·             Simple average

·             Moving average

·             Exponential smoothing

·             Expected value

·             Decomposition forecasting

·             Autoregressive integrated moving average

·              Box-Jenkins forecasting

2. TYPES OF FORECASTING

·  Micro and macro factors

·  Forecasting sales

         o  Estimating market demand

         o  Estimating company demand

         o  Developing sales forecast

·  Forecasting cost of sales

·  Forecasting operating expenses

·  Forecasting key assets and liabilities accounts

·  Modeling the income statement forecast

·  Modeling the balance sheet forecast

3. BUILDING FORECASTING MODELS

• The units, quantity, and activity levels
• The price and cost per unit of activity
• Pricing strategies
  •        Cost plus pricing
  •        Pricing: business objectives
  •        Pricing: return on investment
  •        Expansionistic pricing
  •        Price skimming
  •        Variable cost pricing
  •        Breakeven pricing