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An Intro to Financial Data Modeling


Financial modeling is the ability of building a dynamic structure (Excel Spreadsheet) that can be used to assess investment opportunities, acquisitions & mergers, capital building or to assess company’s past or future financial presentations. – PowerPoint PPT presentation

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Title: An Intro to Financial Data Modeling

An Intro to Financial Data Modeling
About Us MindCypress is an excellent platform for
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Currently, we are catering to most parts of the
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Well lets not make it hard on ourselves so let
me go ahead and try to explain it in a simpler
way, Financial modeling is the process, a way to
put together a financial representation of a
business or we can say that its creating a
summary of business operations. This task of
building a mathematical model helps financial
analysts to foretell likely performance and
earnings of the company in future. Studying
these financial models/representations the
analysts use numerous projection formulas,
valuations and theories to recreate business
operations, once these financial models are
completed it demonstrates a numerical description
of the business procedures which then is used
for future business predictions. In a recent
survey it has been found that 96 of analysts
use excel spreadsheets as a primary tool to
create the financial models.
  • How can one learn to build a financial model in
    Excel and is it hard?
  • To be very frank and honest the answer to the
    above question is yes, if youre trying to learn
    it out on your own, but with the help of a
    professional teaching in Financial Data
    Modeling program this becomes a lot easier to
    understand. Secondly its actually not an issue
    of whether financial data modeling is hard or not
    as it totally depends on your purpose and
    keenness to acquire new skills or to brush up
    your current skill set. Let me go ahead and
    explain some things like some techniques in Excel
    and Skills that will be helpful to know and have
    when going for a Financial Data Modeling
    Certification course.
  • Some of Financial Modeling Skills and Techniques
    Every Financial Analyst Must have and know
  • Financial modeling is the ability of building a
    dynamic structure (Excel Spreadsheet) that can
    be used to assess investment opportunities,
    acquisitions mergers, capital building or to
    assess companys past or future financial
    presentations. Some of the most important
    financial modeling skills needed to be a
    top-notch financial analyst are
  • Strong Excel skills To create financial models
    can sometimes be more of a talent than a
    science. Knowing things like main keyboard
    shortcuts helps in saving time resulting in
    building models more quickly. It will be of great
    advantage if you will know all the main formulas
    and functions by heart to carry out calculations
    and financial analysis.
  • A firm understanding of accounting In order to
    build and sort out a financial model, its
    important that you should possess a sound
    knowledge of accounting basics. Its important
    that you have adequate accounting skills to know
    how to read financial report, how to analyze
    statements, and how to put them back and forth.
  • Excellent problem solving skills Good financial
    analyst has the capability to think logically
    and in a very well thought of manner. When making
    a financial model, it is essential to follow a
    logical flow of order so that your team mates can
    without doubt understand what you have prepared
    when they look into your Excel sheets.
  • Historical Data Here all your assumptions for
    the future years are based on your historical
    data of the company. Understanding the historical
    data can give us some important and close
    interrelated data for the future of the company.
  • Scenario analysis model This practice involves
    creating a scenario from a series of inputs or
    variables merged collectively. Most businesses
    will go with 3 scenarios for a phase A basic
    phase, a best phase and a worst phase. In a
    worst case scenario you may choose a mixture of
    key variables and look at the probability of
    business surviving in the worst phase in a given
    time. You can build a scenario for any situation
    of specific set of variables that helps you out
    in planning your business. Theres no need to
    limit it on macros or top-level variables also.
  • The 3 statement model You must have probably
    heard of the 3 statement model by now. If your
    historical data is well structured and if its
    cloud based then its very easy to create these
    reports. Generating a forecast statement of these
    reports also isnt the

  • same thing as modeling and these statements are
    the result of your model, not the model itself.
    Generating a forecast version of these reports
    also isnt modeling. The statements are the
    result of your model, though not the model
    itself. Your model is setup as a spreadsheet
    page of assumption and metrics associated by
    formulas. Financial statements are setup on
    other sheets that are also linked by formulas so
    it gives you the capability to make alterations
    to the assumptions and see the financial outcomes
    flow throughout the model. And now we are
    modeling folks!!!
  • Conclusion
  • At certification in Financial
    Data Modeling gives learners an edge over the
    others in the same field, as this course is an
    exciting area for data science learners. In this
    course from Mindcypress you will study density
    models, linear and non-linear sequential data
    with topics like
  • Excel as a Tool for Financial Modeling
  • Referencing Excel Shortcuts for Financial
  • Projecting Cash Flow Statement
  • Advanced Tools in Excel for Auditing Financial
  • Understanding Macros etc.
  • The course offered by Mindcypress are delivered
    in three choices as per your need live virtual
    classroom (LVC), Physical learning/classroom
    learning and e-learning/self- learning to know
    more about the course get in touch with our
    customer support team one of the
    pioneering e-learning sites of the world.

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