Financial Analysis and Modelling Training Course

Participants can identify accounting treatments that affect comparability, earnings and valuation inputs.

• Revenue recognition timing and its effect on reported growth
• Non-recurring items separated from sustainable operating performance
• Capitalised costs assessed against recurring expense treatment
• Lease accounting effects on EBITDA, debt and cash flow
• Depreciation policies compared across assets and reporting periods
• Related-party transactions reviewed for pricing and disclosure risk

Participants can structure transparent Excel models that are efficient to build, review and update.

• Model architecture separates inputs, calculations, outputs and checks
• Consistent time periods, sign conventions and unit assumptions
• Excel formulas use absolute references and clear dependency chains
• Named ranges and structured tables improve model readability
• Input cells distinguished from formulas through formatting conventions
• Error checks identify broken links, circularity and balance failures

Participants can analyse historical results and isolate the drivers of financial performance changes.

• Horizontal analysis measures period-on-period financial statement movements
• Common-size statements reveal changing cost and capital structures
• Revenue bridge separates volume, price, mix and currency effects
• Margin bridge explains gross profit and operating profit movements
• Variance analysis compares actual results against budget and prior year
• Management commentary tested against reported financial evidence

Participants can calculate, interpret and benchmark ratios for profitability, liquidity and financial risk.

• Return on invested capital decomposed using operating profit drivers
• DuPont analysis separates margin, asset turnover and financial gearing
• Current ratio and quick ratio assess short-term liquidity
• Cash conversion cycle links inventory, receivables and payables
• Net debt to EBITDA measures borrowing capacity and risk
• Peer benchmarks adjusted for accounting policies and business models

Participants can establish evidence-based forecasting assumptions and document their sources and dependencies.

• Forecast horizon aligned with planning, funding and valuation decisions
• Top-down forecasts reconciled with bottom-up operating assumptions
• Driver trees connect commercial activity to financial statement lines
• Historical run rates tested against known structural changes
• Assumption registers record sources, owners, rationale and update dates
• Base case assumptions distinguished from management targets and aspirations

Participants can forecast revenue and gross margin using operational drivers and explicit assumptions.

• Revenue model built from units, price, mix and timing
• Customer cohorts modelled through acquisition, retention and spend assumptions
• Contract backlog and pipeline converted into revenue recognition schedules
• Seasonality profiles applied to monthly sales and delivery patterns
• Cost of sales forecast through volume and input-cost drivers
• Gross margin bridge tests price, mix and procurement changes

Participants can forecast operating costs and working capital movements that determine operating cash needs.

• Fixed and variable cost bases separated for forecasting
• Payroll modelled through headcount, grades, recruitment and attrition
• Selling costs linked to revenue, channels and campaign timing
• Receivables forecast using days sales outstanding assumptions
• Inventory modelled through turnover, procurement cycles and safety stock
• Payables forecast using supplier terms and purchasing schedules

Participants can model long-term assets, financing arrangements and tax effects within a financial plan.

• Capital expenditure schedule tracks additions, disposals and commissioning dates
• Depreciation calculated using useful lives and depreciation conventions
• Debt schedule models drawdowns, amortisation, interest and maturity
• Revolving credit facility availability tested against liquidity requirements
• Interest expense linked to average balances and contractual rates
• Tax model reflects taxable profit, losses and payment timing

Participants can prepare short-term and medium-term cash forecasts and assess liquidity risk.

• 13-week rolling cash forecast built from receipts and payment schedules
• Direct cash forecasting reconciled with indirect cash flow outputs
• Cash receipts timed using invoicing, collections and credit assumptions
• Supplier payments scheduled from purchases, terms and settlement patterns
• Minimum cash thresholds set for operational and covenant requirements
• Liquidity gaps translated into funding actions and escalation triggers

Participants can link operating assumptions into balanced income statement, balance sheet and cash flow forecasts.

• Income statement forecast pulls revenue, costs, depreciation and interest
• Balance sheet links working capital, fixed assets, debt and equity
• Cash flow statement reconciles profit, non-cash items and movements
• Retained earnings roll-forward connects net income and distributions
• Circularity between cash, debt and interest resolved systematically
• Balance checks confirm assets equal liabilities plus equity

Participants can value a business using free cash flow forecasts, discount rates and terminal value methods.

• Free cash flow calculated from NOPAT, investment and working capital
• Weighted average cost of capital built from debt and equity inputs
• Capital asset pricing model estimates the cost of equity
• Terminal value calculated using perpetuity growth and exit multiples
• Enterprise value reconciled to equity value through net debt
• DCF outputs tested against implied margins, growth and returns

Participants can derive valuation ranges from relevant market comparables and transaction evidence.

• Comparable company selection considers business model, scale and geography
• Enterprise value calculated from market capitalisation, debt and cash
• EV EBITDA multiples normalised for non-recurring items
• Price earnings multiples interpreted alongside growth and capital structure
• Precedent transactions adjusted for control premiums and market timing
• Valuation ranges triangulated across DCF, trading and transaction methods

Participants can test model outputs against uncertainty and identify assumptions requiring management action.

• Scenario narratives define base, upside, downside and stress cases
• Sensitivity tables test valuation against growth and discount rates
• Data tables quantify profit sensitivity to price and volume
• Break-even analysis identifies sales required to cover fixed costs
• Covenant headroom tested under adverse trading and funding assumptions
• Management actions linked to trigger points and decision thresholds

Participants can review model integrity and communicate financial findings in a decision-focused format.

• Independent model review follows structured logic, formula and output checks
• Source data traced through inputs, calculations and reported conclusions
• Version control records changes, ownership and approval status
• Assumption review challenges evidence, consistency and materiality
• Executive dashboards focus on drivers, risks and decision choices
• Board papers distinguish facts, estimates, sensitivities and recommendations

Participants can build, review and present a complete financial analysis, forecast, valuation and recommendation for a business decision.

• Historical statements analysed for performance, quality and key risks
• Operating assumptions translated into an integrated three-statement forecast
• Cash forecast identifies liquidity requirements and financing options
• DCF and comparable valuations establish an evidence-based value range
• Downside scenario tests returns, covenant headroom and management actions
• Model review confirms formulas, sources, checks and documented assumptions
• Executive presentation communicates recommendation, risks and required decisions