Centre for Continuing Education

Financial Modelling Course: Integrated Financial Statements

Finance. Boost your financial know-how.

COVID-19 update: arrangement of our courses

We are now delivering courses both online and in-person. Please check the delivery format for each class before you enrol.

Please note that course materials for all classes (excluding prescribed textbooks) are shared electronically within 48 hours of a course starting. Printing is not available.


Take your financial modelling skills to the next level by learning how to build an integrated three-way financial statement model (a ‘3-Way Model’). If you intend on pursuing a career in financial modelling and have not yet learnt a systematic approach to building a 3-Way Model, then this is the course for you.

One of the cornerstone skills in financial modelling is being able to go from a blank spreadsheet and build a model that can forecast the Operating Statement, Balance Sheet and Cash Flow Statement in such a way that they are all linked and maintain the fundamental integrity of a balancing balance sheet.

Whether you are modelling an existing company with historical financial statements, or a new company, this course will provide you a framework to be able to design, build, error check and modify a 3-Way Model. Using best practice modelling practices, and introducing practical uses of more advanced functionality such as scenario and sensitivity modelling, this course will give you a step-by-step approach you can use to apply to any 3-Way Model task you might encounter in your career.

Aims

This course aims to provide you with a systematic approach to building a 3-Way Model in Microsoft Excel for any kind of business, irrespective of industry.

Outcomes

By the end of this course, you should be able to:

  • explain why a 3-Way Model can be more powerful than simply forecasting a stand-alone Profit and Loss statement
  • construct your own 3-Way Model from a blank spreadsheet
  • create and use Named Ranges to be able to rapidly build robust models
  • quickly and safely update your model to provide additional detail or complexity for any given line items
  • build working capital into your models
  • build a model that can have flexible timing structures
  • solve many of the common problems that cause the balance sheet not to balance when building 3-Way Models
  • avoid many of the common mistakes and approaches that can cause circularities
  • create a model with error checks with in sheets, and linked across the entire model
  • apply NPV from first principles and discuss the difference between Excel’s NPV and XNPV functions
  • create a scenario analysis functionality for a model
  • build a sensitivity analysis using Exec’s Data Table functionality for multiple inputs.

Content

Why build integrated 3-Way Models?

  • The fundamental reasoning behind integrated 3-Way Models
  • The reasoning against traditional Profit and Loss statements
  • The reasons against linking traditional financial statements

Building your 3-Way Model

  • A 6-Step approach to building a 3-Way Model
  • Working towards a model that can be used in any business context

Error checks and trouble shooting

  • Identifying common tricks and errors when building and evolving your 3-Way Model
  • Minimising errors as they creep in
  • Methods for identifying the most common errors specific to 3-Way Models

Modelling best practices and advanced Excel

  • Watch a live 3-Way Model build, employing best practices
  • Participate in an in-class task introducing many advanced Excel techniques, including: use of flags, named ranges, data validation and data tables

Intended audience

Suitable for those already working, or about to start working in a career that heavily relies on Microsoft Excel to build models. Typical roles that require these skills include:

  • Investment bankers
  • Financial analysts
  • Commercial analysts
  • Strategy consultants
  • Finance and treasury staff.

Delivery style

  • Workshop
  • Computer-based training using Excel on your own device
  • One day, face-to-face course

Materials

You will gain ongoing access to all exercises and teaching materials covered in the sessions. In addition to the slides and activities, the model you build in class will provide an ongoing reference when building 3-Way Models.

Bring your own device

You are required to bring your own device (Windows or Mac) and a power chord. Please ensure your device is fully charged as access to power is limited. Whilst you can use a Mac, this course is designed to replicate a Microsoft Windows environment.

Please note that University does not carry any responsibility for your lost, stolen, or damaged devices whilst on the University premises.

Features

  • Expert trainers
  • Central locations
  • Course materials – yours to keep
  • CCE Statement of Completion

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