Foundations of Financial Modeling

Objective:

By the end of this Foundations of Financial Modeling Training Course, participants will be able to:

• Make informed and improved financial decisions
• Develop robust and structured financial models
• Apply analytical tools and techniques for financial data evaluation
• Model and manage financial risk using practical approaches
• Assess project performance through effective financial modeling techniques

Content:

Foundations of Finance

• Financial & Management Accounting
• Developing Financial Statements – Income Statement, Balance Sheet (Statement of Financial Position) & Cashflow Statements
• Financial Performance using Ratio Analysis
• Management Accounting – developing budgets
• Financial Terminology Explained

Foundation of Modelling

• Basic Excel functions
• Steps to develop a Financial Model
• Flow charting Techniques to improve Modelling
• Input Tables
• Pivot Tables
• Foundation Analysis Tools in Excel

Financial Modelling

• Forecasting the Income Statement, Balance Sheet (Statement of Financial Position) & Cashflow Statements
• Budgeting Models
• Purchase Decisions
• Modelling Finance Decisions – Equity or Debt and the Cost of Capital
• Capital Investment Decisions – Payback, ARR, NPV & IRR using Excel
• Graphs & Charts to support financial models

Modelling Risk Management Scenarios

• Identifying the major Risks in the Oil & Gas sector
• Modelling Risk & Uncertainty
• Sensitivity Analysis
• Scenario Analysis
• Break Even Analysis
• Modelling & Managing changes in Interest Rates & Exchange Rates

Modelling the Financial Performance of Oil & Gas Projects

• Variance Analysis
• Critical Path Analysis – Financial & Manpower implications
• GANTT Charts
• Earned Value Analysis
• Managing Variances
• Simulating changes in the project