More Financial Modelling in Excel Training

Last week we delivered a Financial Modelling in Excel Training course to students from across South East Asia at the M Hotel in Singapore.

The two day course covered a range of Excel tips, tricks, functions and functionality as well as exploring Best Practice theory. This newly amended course is overwhelmingly practical with Excel skills explained in the context of financial modelling situations.

One of the core components of this course is to develop a base financial model template from scratch. This included adding a collection of styles which are helpful for implementing consistent, purpose-based formatting, a central tenant of Best Practice. Armed with the tools to develop the best practice Excel template, the course attendees were taken through the development of time period headings and counters, reference tables, checks worksheets and a contents table.

On completion of the template, attendees moved onto examples taken from real-life financial modelling situations that Prophecy employees have encountered. These exercises started with a core financial modelling technique, data manipulation. Data manipulation includes sorting and cleansing data, creating unique identifiers, using SUMIF to summarise data, filters and advanced filters, pivot tables and model import and export worksheets.

With sorted data, the attendees added assumptions worksheets (with data validation and conditional formatting) before incorporating the sorted, summarised data into integrated financial statements. With the financial statements completed using a robust population method, the attendees created annual summaries of the monthly statements.

Beyond the financial statements the attendees were taken through a range of financial modelling situations, such as building depreciation and amortisation waterfalls, valuations and discount factors, creating scenario handlers and applying sensitivities, using data tables, creating charts and dashboards and model finalisation pointers.

The feedback from the course indicated a range of take-aways as is common with open courses. Benefits ranged from how to structure a workbook and best practice theory, to creating charts and Excel styles.

In the final analysis, Excel skills are crucial to the development, upkeep and use of best practice financial models.

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