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About the Course:
Financial Modeling requires great skills in Practical
Finance, MS-Excel and Business / Industry analysis. This course is
one-step-solution which precisely covers all these areas and trains you
to build spreadsheet based projections from a blank worksheet.
So, if you are an entrepreneur preparing a business plan
for your potential investors or just a graduate dreaming to work as an
analyst at an Investment Bank, this is the program for you!
This entire Curriculum is divided into 3 different Courses
You are viewing Learn Financial Modeling from Scratch - Part 2
Learning materials include
Course Facilitator (Faculty):
The course is facilitated by Ashutosh Zawar, who is a
rank-holder Chartered Accountant and a Bachelor of Commerce from
University of Pune, India. He is a Co-Founder & Lead Trainer @
Academy of Financial Training. He has over 9 years of experience across
Investment Banking, Project Finance, Consulting and Training.
Ashutosh has over 1,000 hours of professional training experience.
He looks after the e-learning, multimedia content management at Academy
of Financial Training (AFT). He has been instrumental in launching
AFT's new training programs and innovating curriculum across topics such
as Advanced Financial Modeling, Excel, Banking, Corporate Finance.
Before co-founding AFT, he worked with the Project Finance
team at IDFC, a leading financial services company in the Infrastructure
domain and the Investment Banking team at Morgan Stanley. he has worked
on sectors such as healthcare, education, tourism, telecom and energy.
His work profile included operational and financial modeling, business
appraisal, valuation analysis, drafting of terms and commercial
The entire 3 part course takes about 8-10 hours of video-based
learning and 20-30 hours of simultaneous self-practice on MS Excel.
Structure of the Course:
Why take this Course?
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30 day money back guarantee.
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Desktop, iOS and Android.
Certificate of completion.
|Section 1: Introduction|
Greetings from Academy of Financial Training (AFT)!!!.
Thank you for choosing AFT for learning Financial Modeling.
This Course is a follow up on the Learn Financial Modeling from Scratch - Part 1 Course. Please make sure to check out Part 1 of the Course before you begin with Learn Financial Modeling from Scratch Part 2 , & Part 3 of this Course. Please ignore if already subscribed
Our first video gives you a brief introduction to AFT's 'Learn Financial Modeling From Scratch' Program. Importantly, it guides you to important tools & features of the program that you can use to get a seamless learning experience of the Program.
Wish you All the best & Happy Modeling!!!!
|Section 2: Populating the Dashboard|
Continuing from Learn Financial Modeling from Scratch - Part 1 we proceed with 2nd part of this Course
This session populates certain sections of our Financial Modeling
The session introduces the concept of Maintenance or Routine Capex and how it is different from Expansionary Capex.
The session also talks about Financial Modeling Best Practice -
This session populates additional sections of our Financial Modeling
The session introduces the concept of Working Capital Finance Limit
It also includes entering assumptions related to Company's expansion strategy i.e. Assembly Line in China.
The session adheres to the Financial Modeling Best Practice - "Maintain separate colour coding for Inputs vis-a-vis Outputs."
|Section 3: Building up the Revenue Forecasts|
In this session, we analyze Top-Down Historical Trends in global
The session introduces the concept of Organized and Unogranized
The session has some very useful tips for Quick Modeling i.e. Use of 'Text-to-Columns' and 'Paste Special'
The session also talks about dealing with outlying values when analyzing historical trends.
In this session, We calculate the forecasts for size of overall,
The growth calculation considers 3 possible scenarios i.e. Worst Case,
Additionally, the session introduces an important concept i.e. Top-Down and Bottom-up ways of forecasting revenues.
Financial Modeling about Use of Cell Naming, maintaining Consistent Formulas across a Row are covered here.
Quick Excel tips such as 'Use of Ampersand (&) to create Dynamic
In this session, we build the forecasts for organised industry size.
The % share of organised players considers 3 possible scenarios i.e.
Quick tips such as limiting the number of Switches (choices) in the model is introduced here.
In this session, we complete the Final Step i.e. The Company's Revenue
Considering 3 possible scenarios, we forecast that the Company will
The session offers important tip about treatment of outlying and extreme one-off values when analyzing historical trends.
Special Focus - The CHOOSE Function in ExcelPreview
Populating Dashboard & Building Revenue Forecasts
|Section 4: Forecasting various elements of the Income Statement|
In this Session, we create separate sheets for forecasting the Income
That's why, for historical financial statements, we create new links from historical sheet to the P&L and BS sheet.
We adhere to the Financial Modeling Best Practice - "For calculations,
In this session, we forecast the trends and ratios in the Income
We define 3 important approaches to forecasting the trends. The forecasted trends will be equal to
We use the CHOOSE function along with Data Validation for this. We
The session has quick time-saving tip about the intelligent use of
In this session, we understand the rationale for assuming certain
When calculating historical trends, we had calculated the trends for
Going forward, we assume them to be Variable Costs, because if we
In this session, we complete the forecasts for all line items in the
At this stage, in the Income Statement, only items which are pending
We introduce some quick ways to build formulas and keeping them
We also complete calculations part of the forecasted Income Statement,
Forecasting elements of Income Statement
|Section 5: Forecasting various elements of the Balance Sheet|
In this session, we divide the Balance Sheet forecasts in two parts.
simply copying over the formulas from historical Balance Sheet. (Here,
In this session, we complete the forecasts for Working Capital items
A quick tip about auto-completing the formulas by selecting from a list of suggested function names or defined names.
Balance Sheet Related
|Section 6: Specialized Calculations - Capital Expenditure & Depreciation|
This Session discusses the flow of calculations for forecasting
For calculation of depreciation, forecasting the capital expenditure
When forecasting the Expansionary Capex, especially construction of
In this session, we forecast the maintenance and expansionary capex.
We make the relevant modifications in the dashboard. This also includes
The session discusses advantages and disadvantages of cell naming. We
Financial Modeling Best Practice: "Use cell-names judiciously. Overuse of names may lead to the model losing its flexibility."
In this session, we forecast the depreciation calculated using the WDV
We prepare detailed calculations schedules including Gross Asset Value
The session uses F5 Key (Go to) heavily to check and change cell
Financial Modeling Best Practices adhered to:"Maintain unidirectional
Depreciation using the Straight Line Method (SLM) can be tricky when
Here we create a simpler step-by-step solution to calculate SLM
Our objective is to create one formula that can be used across multiple
In this session, we create a complete SLM Depreciation schedule, which
1. The Total Accumulated Depreciation should not exceed the Cost of Assets
To create a single, flexible formula that can be universally used in
TRANSPOSE is an array function. Arrays provide shorter alternatives to
The session also talks about use of MIN and MAX as alternative to IF or NESTED IF calculations to create simpler formulas.
In this session, we create a Single-row Alternative Formula for
We use the OFFSET function along with SUM for the same. The OFFSET
In this session, we complete the first major specialized calculation
Relevant modifications are made in the Dashboard
We link the Annual Depreciation forecasts into the Income Statement. We
Specialized Calculations - Capital Expenditure & Depreciation
|Section 7: Specialized Calculations - Term Loan & Working Capital Finance|
In this session, we create another Specialized calculation i.e. the
We modify our dashboard to include the relevant assumptions and name
The amount of Term Loan is based on the funding percentage viz-a-viz the capex for assembly line, as agreed with bankers.
The repayment amount has to be forecasted based on repayment period and
Finally, we calculate the Interest Expense on the Term Loan.
The session has some Quick Excel Tips about editing cell names etc. It
In this session, we understand the concept of Capitalization of Interest Cost and create related calculations.
First of all, we segregate the calculation schedule for New Term Loan
Following are some of the questions which are answered in this session:
The session talks about a Best Practice: Keep a check on the number of
In this session, we forecast the Net Working Capital (NWC) requirement
The session calculates various elements of NWC gap i.e. Current Assets (Minimum Cash, Inventory, Accounts Receivable) Less: Current Liabilities (Accounts Payable and Provisions)
We explain the concept of Minimum Cash and how it forms part of the NWC gap.
We adhere to the Financial Modeling Best Practice: "Maintain
Specialized Calculations - Term Loan & Working Capital Finance
|Section 8: Forecasting Various Elements of the Cash Flow Statement|
In this session, we start building Forecasted Cash Flow Statement. We
We start with PAT line and arrive at the Cash Flow from Operations. In the process, we adjust the
The impact of all these adjustments on the Cash Flow is explained in a detailed manner.
Cash Flow statement is based on the other 2 Financial Statements.
Changes in Assets and Liabilities and how do they impact the Cash flow is also covered in detail.
In this Session, we complete the layout and linking for Cash Flow from Investing Activities.
All the line items i.e. Capital Expenditure, Proceeds from Sale of
We have not considered Short Term Investments at this stage, as we plan
In this Session, we complete the layout and linking for Cash Flow from Financing Activities.
All the line items i.e. Term Loan drawal, Repayment, New Equity issued,
We have not considered Promoter Loans at this stage, as we plan to
Importance of signs (+ or -) when dealing with all the line items in Cash Flow is highlighted all through.
Quiz on Forecasting Various Elements of the Cash Flow Statement
Academy of Financial Training is engaged in providing niche financial trainings to companies, educational bodies and individuals. We have been in operation since ~4 years and have trained 5,000+ candidates and have a range of marquee MNC/corporate clients including companies like GE, Hewlett-Packard, Genpact, Canon, Deutsche Bank, IL&FS, Essar Steel, amongst others. Our strength has been the robust financial training content based on years of research backed by effective delivery provided by trainers with rich work experience in the domain.