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KnowledgeCity

Creating Financial Models

Learn how to create, prepare, and evaluate financial models
Preview the first lesson free — get full access to all 5 lessons.
Course: On-Demand
Advanced Provider Matthew Johnston  5 Lessons ·  20m  in Arabic, German, English, Spanish, French, Portuguese, Chinese 

Course Description

Wouldn’t it be great to look into a crystal ball and know what the future holds for your business? There’s no such ability, but financial modeling gives companies the next best thing. Financial modeling uses mathematical data captured in the present to anticipate what the future is likely to bring. Financial modeling is a powerful tool that can help businesses and investors make informed financial decisions. Understanding finance theory and knowing the model development steps can help you create robust financial models that are consistent with the principles of finance.

In Creating Financial Models, you’ll enhance your financial decision-making process by mastering the skills of financial modeling. You will learn how to create, prepare, and evaluate financial models using Microsoft Excel. You will explore how to evaluate the results of your financial model using different methods of analysis and learn how to communicate model results effectively using the pyramid structure.

What You'll Learn

  • Understand the principles of financial modeling and how finance theory guides model development
  • Create, prepare, and evaluate financial models using Microsoft Excel
  • Apply the pyramid structure to communicate model results effectively
  • Evaluate financial models using comparison techniques and sensitivity analysis
  • Build effective financial models to solve complex business problems
  • Use financial models to inform and guide business decisions

Key Takeaways

  • Financial modeling uses present-day mathematical data to anticipate what the future is likely to bring for a business.
  • Financial models are built, prepared, and evaluated using Microsoft Excel.
  • Model results can be evaluated using comparison techniques and sensitivity analysis.
  • The pyramid structure provides a way to communicate model results effectively.
  • Robust financial models consistent with the principles of finance help businesses and investors make informed decisions.

Frequently Asked Questions

What will I learn in this course?

You will learn how to create, prepare, and evaluate financial models using Microsoft Excel, apply the pyramid structure, evaluate models using comparison techniques and sensitivity analysis, and use financial models to inform and guide business decisions.

What tools or skills does this course cover?

The course covers Excel Services, financial modeling, and sensitivity analysis, with models created using Microsoft Excel.

How is the course structured?

The course is organized into lessons: Introduction, Preparing Financial Models in Excel, Evaluating Model Results, Creating Effective Models, and a Test Your Knowledge assessment.

Who is this course for?

It is for those looking to enhance their financial decision-making process by mastering the skills of financial modeling to help make informed financial decisions.