Financial Forecasting and Modelling

Digital Economy

Description

This 2-day interactive seminar goes far beyond the typical financial analysis program. It uses both the principles of analysis and the power of Excel® to identify the strategic drivers that can dramatically enhance the shareholder value of your organization.

What You Will Learn

By the end of this training course, participants will be able to:

Identify the key steps in developing a financial model
Analyze a company’s annual report identifying key performance indicators to understand what the numbers are saying and make projections of future performance
Understand the theory of interest and the time value of money and their applications
Develop an Economic Value-Added model to see the organization from the shareholders’ perspective
Project the benefit of Capital Investment
Learn how to use Excel tools

Syllabus

Day 1

1. FORECASTING MODELS
· Qualitative models
· Market research approach
· Delphi method technique
· Quantitative models
· The indicator approach
· Causal models
· Econometric models
· Regression analysis: simple and multiple
· Correlation coefficient and coefficient of determination
· Time series methods
· Simple average
· Moving average
· Exponential smoothing
· Expected value
· Decomposition forecasting
· Autoregressive integrated moving average
· Box-Jenkins forecasting

2. TYPES OF FORECASTING
· Micro and macro factors
· Forecasting sales
o Estimating market demand
o Estimating company demand
o Developing sales forecast
· Forecasting cost of sales
· Forecasting operating expenses
· Forecasting key assets and liabilities accounts
· Modeling the income statement forecast
· Modeling the balance sheet forecast

3. BUILDING FORECASTING MODELS
The units, quantity, and activity levels
The price and cost per unit of activity
Pricing strategies

Cost plus pricing
Pricing: business objectives
Pricing: return on investment
Expansionistic pricing
Price skimming
Variable cost pricing
Breakeven pricing