Financial Analysis,Modelling
and Budgeting Masterclass

Module 1: Corporate Financial Planning, Budgeting & Control

Day One: Corporate Financial Planning              

• Strategic Planning
• The Objective of the Firm – Meeting Shareholder & Stakeholder Objectives
• Agency Theory – The Relationship between Shareholders & Management
• Creative Accounting and the Case of Enron
• Financial Management & Financial Planning – The Scope, Role & Responsibilities of Financial Management
• Preparing a Financial Plan – The Master Budget
• Forecasting Future Cash-flows and Financial Modelling
• Time Series Analysis, Correlation & Regression

Day Two: Financing the Plan                                          

• Sources of Finance – Long Term & Short Term
• Evaluation of the Types of Finance - Equity vs. Debt Finance
• Hybrid Finance & Financial Engineering
• The Dividend Decision
• The Cost of Capital and Weighted Average Cost of Capital (WACC)
• Capital Asset Pricing Model (CAPM)
• Accounting Rate of Return (ARR)
• Net Present Value (NPV), Internal Rate of Return (IRR) Capital Rationing & Payback

Day Three: Preparing & Managing Budgets to Support the Financial Plans

• Definition of Budgets, the Budgetary Process and Budgetary Control
• Types of Budgets-Fixed, Flexible, Incremental and Zero Based
• The Purpose / Benefits & Problems / Limitations of Budgets
• Setting / Implementing Effective Budgets - Eliminating the Problems
• Responsibility Accounting and Absorption Costing
• Activity-Based Budgeting / Costing (ABB, ABC)
• Variance Analysis, Cost Behaviour, Break Even Analysis & Sensitivity / What If Analysis
• What-If Analysis combined with Du-Pont Analysis

Day Four: Managing and Controlling Cash Flow to Support the Financial Plan

• Cash vs. Profit & The Cash Conversion Cycle
• Calculating and Managing the Cash flow Cycle
• Cash Flow Ratios
• Working Capital
• The Cost of Maintaining Working Capital
• Maintaining the Optimum Level of Working Capital
• Working Investment Ratios
• Preparing a Monthly Cash Flow Forecast

Day Five: Managing Financial Risk        

• Risk Management & Types of Risk
• Identifying Risk – SWOT Analysis
• The Major Quantitative & Qualitative Risks Facing Companies
• Establishing a Risk Management Strategy
• Financial Risk Management & Hedging Techniques
• Managing Exchange Rate & Interest Rate Risk
• Derivatives-Forwards, Futures, Options & Swaps
• Risk Management Glossary of Terms

Module 2: Financial Analysis, Modelling & Forecasting

Day Six: The Competitive Challenge in the 21^st Century 

• Identifying and Managing Stakeholder Needs
• Business Models and How They are Disrupted
• An Integrated Approach to Risk Management
• The Essentials of Business Performance Management

Fundamentals of Financial Modelling

• Financial Statements Basics
• Fundamentals of Financial Modelling

Day Seven: Mastering Financial Analysis 

• Building a Financial Ratio Database in Excel
• Practical Modelling: The Cost-Volume-Profit Relationship
• Measuring and Improving Return On Investment
• Measuring and Improving Asset Management Efficiency
• Measuring and Managing Capital Structure and Risk
• Practical Modelling: The Effect of Gearing on Shareholders’ Earnings

Day Eight: Improving Financial Forecasting 

• Practical Modelling: Using Excel Statistical Analysis Tools
• Avoiding Common Forecasting Problems
• Using Moving Averages to Analyze Time Series Data
• Using Linear Regression for Sales Trend Analysis
• Using Excel Solver to Minimize Forecasting Error
• Using Regression and Correlation to Forecast Costs
• Practical Modelling: Cash Flow Forecasting

Day Nine: Financial Models to Improve Investment Decision-making 

• Principles of Capital Investment Decision-making
• Sources and Cost of Business Finance
• Practical Modelling: Using Excel Discounted Cash Flow Tools
• Practical Modelling: Capital Investment Analysis
• Essentials of Business Valuation
• Practical Modelling: Business Valuation Based on Shareholder Value Added

Day Ten: Managing Risk and Uncertainty 

• Identifying and Analyzing Business Risk
• Probability Based Approach to Decision-making
• Monte Carlo Simulation
• Sensitivity Analysis and “what-if” Forecasting
• Identifying the Key Drivers of Financial Performance
• Practical Modelling: Key Driver “what-if” Forecast