Financial Forecasting and Modelling

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 in order to manage the drivers of business success
• Create tools to use within their own business

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

• Identify the key steps in developing a financial model
• Analyse a company’s annual report identifying key performance indicators in order to understand what the numbers are really 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

• 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

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

·         Auto regressive integrated moving average

·         Box-Jenkins forecasting

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

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