Financial Modeling Course And Its Benefits

By Author: Skillfin Learning
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Financial modeling is one of the most coveted skills in today’s corporate world as no business can grow or get investment without a financial model.

This a model, or a tool that helps businesses grow. A model is built using Excel to forecast a company’s financial performance in the near future. The financial forecasts are made using data and a few specific formulas. Other things taken into account are a business’s historical performance and the market scenario. The model typically requires preparing, balance sheets, income statements, cash flow statements, and supporting data.

The demand for a financial modelling analyst is on the rise. This is considered an essential skill needed by finance professionals who deal with companies, banks, and businesses.

What is a financial model used for?

A financial model is used for businesses for decision making and performing financial analysis. The company may use a financial model to take the following decisions:
• Making Acquisitions or planning merger
• Raising investment (debt and/or equity)
• Before selling a business/part of business/divesting assets
• Growing a business organically ( example- opening new branches, franchise, etc.)
• Planning a budget for the coming year
• Valuing a business’s net worth

Financial Modeling is extensively used in Different Sectors like:

• Investment Banking
• Credit Rating Agencies
• Equity Research
• Mutual Funds
• Angel and VC Investments
• Financial Institutes and KPOs

Financial Modeling Excel sheets are usually based on historic data and companies' key financial components. But for startups, it needs to based on market data as startups do not have much of a historic data to show. When done expertly finance models can mitigate financial risks, help an organization to make better decisions with a better strategy. The best financial models are data-driven and are prepared after an extended analysis of various amalgamated data.

Anyone from a top management or even an investor will always find numbers more convincing than assumptions.

Career opportunities:

Every company needs a financial model to excel and grow. It is the main element of an organization’s decision-making process. The Financial model allows corporations to explore and understand the outcome in different situations.

Here are some of the career opportunities that one can explore after pursuing financial modeling course:
• Merger and acquisition
• Project finance and investments
• DCF Modeling
• Venture Capital and Incubation
• IP Valuation
• Ratio and Risk Analysis
• Asset Allocation
• Qualitative Analysis
• Sensitivity Analysis

There are numerous jobs that can be availed after completing an online Financial Modeling course from any reputed institute. In today’s world where every person wants to plan and spend each penny, there is a huge demand for financial professionals who are experts and financial modelling. There is a wide range of roles and opportunities available after once you complete a certified Financial Modeling Excel Course. Some of them are:

• Business Analyst
• Financial Analyst
• Finance Manager
• Equity Analyst
• Investment Banker
• Startup valuer

What will You Learn?

There are many things you will learn while doing a Finance Model Course depending on the stage you choose but all courses will teach you about -

Microsoft Excel and many of its advanced features
P&L statements from a raw data extraction
Cash Flow statements
Company Valuation
Building Valuation models from scratch
Create models with multiple scenarios

Rajiv G. is a Strategy and Corporate Finance Consultant with 15+ years of experience. Previously, he has worked with the Strategy and Corporate Finance practice at McKinsey & Company. He has advised clients globally in multiple industries on various Strategy and Finance engagements. Prior to this, he has worked as an Equity Research Analyst with CRISIL. He is a CFA and Chartered Accountant.