Financial Modeling in Excel (Concepts and Application)

Description

Unlock the power of Excel and transform your financial data into actionable insights with our comprehensive Financial Modeling course. Designed for aspiring financial analysts, business students, and finance professionals, this course will equip you with the tools and techniques to build robust financial models from scratch.

Through hands-on, practical exercises, you’ll learn to construct financial statements, forecast revenue, calculate costs, analyze feasibility, and optimize decision-making for real-world business scenarios. Starting with the fundamentals, you’ll dive deep into key concepts such as ratio analysis ,depreciation, tax rates, discounting cash flows, and scenario analysis, mastering the best practices for designing dynamic and accurate models.

The course structure is designed in a way that will enable learner to understand concept before application of the same in excel. Following are details of course structure :

Section 1: Overview

It includes introduction of Course, understand meaning of Financial modeling, Introduction to excel and prerequisites in excel

Section 2 : Excel Functions and Formulas

Here we will begin with learning basic excel formulas such as sum, count, if, sum if, count if etc and then proceed to learning formatting, cell referencing, Vlookup and Hlookup, Pivot table, conditional formatting, data validation and Protection of workbook, cell protection.

Here basic data sheet will be provided and it will be practical hands-on session wherein learners will be working on same datasheet along with video lectures.

Section 3 : Advanced Excel Functions and Formulas

Moving further we will be learning Name manager, Goal seek, Scenario Manager and data tables in excel.

Section 4 : Financial Statements and Historical Plotting

Here section begins with understanding Financial statements and then using basic data sheet we will be plotting historical financial statements in excel. Please note that basic data sheet will be provided and learners will be working from scratch to build financial model using this data sheet. This is hands-on session where learners will design model along with lecture.

Section 5 : Ratio Analysis (Concept)

Here We discuss about different types of Financial Ratios such as Liquidity Ratios (Short term solvency ratios) , Leverage Ratios (Long Term solvency ratios) ,Activity Ratios (Turnover ratios) and Profitability Ratios.

Liquidity Ratios includes current ratio, quick ratio, cash ratio and Interval measure ratio. Each ratio is explained in video lecture along with illustrations.

Leverage Ratios include equity ratio, debt ratio, debt to equity ratio, debt to total assets ratio, proprietary ratio, capital gearing ratio, debt service coverage ratio, dividend coverage ratio, interest coverage ratio, fixed charges coverage ratio etc. Each ratio is explained in video lecture along with illustrations.

Turnover ratios include fixed assets turnover ratio, net assets turnover ratio, current assets turnover ratio, working capital turnover ratio, inventory turnover ratio, receivables turnover ratio, payables turnover ratio etc. Each ratio is explained in video lecture along with illustrations.

Profitability ratios include gross profit ratio, net profit ratio, operating profit ratio, expenses ratio, return on assets, return on capital employed, return on equity, earning per share, dividend per share, dividend payout ratio, price earning ratio, dividend and earning yield ratio, market value by book value ratio, Q ratio. Each ratio is explained in video lecture along with illustrations.

DuPont Analysis on ROI (Return on Investment) , ROA (Return on Assets)  and ROE (Return on Equity)

This module also includes a comprehensive solved illustration that explains how to calculate all types of ratios and how to use these ratios for analysis and decision making.

Section 6 : Ratio Analysis in Excel (Application of Concepts)

Here we will be preparing a detailed Ratio Analysis of the entity in excel. We will be preparing Ratio analysis report, Dupont analysis report , Altman's Z Score report along with Charts in excel.

Section 7 : Time Value of Money (Concepts)

Here we discuss about the concept of Time Value of Money and how to use concept of time value of money. The relationship between inflation, purchasing power and Time value of money is separately discussed. Other topics included are Difference between Simple interest and compound interest, Present value and Future value of money, Formula for present value and future value, Discount Factor, Annuity, Present Value and Future Value of Annuity. All topics are explained in video lecture along with examples.

Section 8 : Capital Budgeting (Concepts)

It begins meaning of Capital Budgeting and purpose of Capital Budgeting. This is followed by process of capital budgeting and types of Capital budgeting decisions - Replacement and Modernization decisions, Expansion decisions, Diversification decisions, Mutually Exclusive decisions, Accept or Reject decision, Contingent decision.

Other terms such as incremental cashflows, Tax Benefit on Depreciation, Opportunity cost and Sunk cost, Working capital costs, allocated overhead costs are also explained in separate tutorials along with illustrations. This is followed by types of cashflows for new project and replacement project along with basic principles of calculating cashflows.

All Capital Budgeting Techniques i.e Payback Period Method, Payback Reciprocal Method, Accounting Rate of Return (ARR) Method, Discounted Payback period method, Profitability Index method (PI) , Net Present Value Method (NPV) , Internal Rate of Return Method (IRR) and Modified Internal Rate of Return (MIRR) are discussed in detail along with meaning , Illustrations , advantages and disadvantages. Reinvestment assumptions and anomalies in Net Present Value Method (NPV) and Internal Rate of Return Method (IRR) method along with reasons and examples are discussed separately.

Capital Rationing Meaning and Capital Rationing for Divisible and Indivisible projects is discussed along with solved illustrations.

Methods to analyze Mutually exclusive projects with different tenures - i.e Replacement chain Method and Equivalent annualized criterion method are also included along with solved examples.

Section 9 : Time Value of Money and Capital Budgeting (In Excel) - Application

Here we will be learning how to calculate present value and future value, IRR, Annuity in excel. Then we will proceed further and learn project evaluation in excel using net present value (NPV) method and Internal rate of return (IRR) method.

Section 10 : Forecasting in Excel

Here we will be preparing and learning how to make forecast in excel. We will be learning how to make Revenue and expense forecast using Arithmetic mean, Geometric mean, Moving average and Regression. We will also learn Balance sheet forecasting on basis of Revenue.

Who this course is for:

• Professionals who are keen to learn how to develop Financial model in excel from scratch
• Aspiring Financial Analysts – Build a strong foundation in financial modeling to support career goals in finance, investment banking, and equity research.
• Finance and Business Students – Gain practical, hands-on skills that complement academic knowledge and prepare you for internships and job placements.
• Entrepreneurs and Business Owners – Learn to forecast financial performance, assess project feasibility, and make informed decisions to drive business growth.
• Corporate Finance Professionals – Enhance analytical capabilities for budgeting, forecasting, and strategic planning within an organization.
• Consultants and Financial Advisors – Gain valuable Excel modeling skills to analyze business opportunities and present data-driven insights to clients
• Anyone Seeking Excel Proficiency in Financial Contexts – Improve data handling, analysis, and model-building skills for any role requiring financial data-driven decision-making.