Why Financial Modelling is Important?
- Compliance and Reporting
- Optimizing Capital Structure
- Scenario Analysis
- Business Planning
- Profitability Analysis
- Resource Management
- Helps in Communication with Stakeholders
- Strategic Planning
- Forecasting and Budgeting
- Investment Decisions
- Risk Management
- Capital Raising
- Valuation
- Performance Analysis
Where can you use Modelling?
- Forecasting Models
- Different Business & Financial Scenario Analysis
- Sensitivity Analysis
- Leveraged Buyout (LBO) Modelling
- Option Pricing Models
- Valuation Modelling
Steps of Financial Modelling
- 1. Define Objective
- 2. Data Gathering
- 3. Data Analysis
- 4. Key Drivers & Assumptions
- 5. Scenarios & sensitivity Analysis
- 6. Final Statements
- 7. Conclusion
Steps Of Financial Modelling
Define Objective
Merger & Acquisition
Investment decision
Raising Funds
Legal Compliance
For Shareholders
Strategic Purpose
Steps of Financial Modelling
Data Gathering
Company Details
Historical Financials
MIS
Legal Compliance
For Shareholders
Steps of Financial Modelling
Key Drivers & Assumptions
Growth Reate
Discount Rate
Revenue & Cost Drivers
Assets & Liabilities Drivers
Steps Of Financial Modelling
Financial Data Analysis
Calculation of Financial Ratios
Historical trend analysis
Justification of future trends
Steps of Financial Modelling
Final Statements
Projected Profit & Loss Statements
Projected Balance Sheet
Ratio Analysis
Sensitivity Analysis
Scenario Analysis
Other reports
Steps of Financial Modelling
Scenarios, Sensitivity Analysis And Final Conclusion
- Different Performance Scenarios
- Sensitivity analysis to analyse different financial situations
- Impact Study of Sensitivity
- Advisory Report
- Performance Graphical Analysis
Requirements of Financial Modelling
- Company Profile
- Financial Statements
- MIS
- Cash Flow Statements
- Operational Information
- Industry & Trends of Industry
Conclusion
- Financial Modelling is a powerful tool for decision – making.
- Understanding of business and key drivers in very essentials for modelling.
- Business can take an informed decisions using financial modelling.
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