An Intro to Financial Data Modeling

1. AnIntrotoFinancialDataModeling AboutUs MindCypressisanexcellentplatformforcognitivee-learningwithagreatprogressive coursestructure.Wehavebeencreatingan impactontheonline educationindustry, since2015.Currently,wearecateringto mostpartsoftheUnitedStates(USA),United Kingdom(UK),MiddleEast,AfricaandSouthEastAsiaforserviceslikeClassroomand LiveVirtualTrainingCourses.Intoday’stime,wearemakingourpresencegloballyin the fieldofe-learning.Professionalsandscholarswouldgeta career growth with MindCypress’sinnovativeself-learning&certificationprogram.E-learningcoursesfrom MindCypressgivesyoutheconvenienceandflexibilitytotakesessionsfromanywhere andindulgeinthemodulesatyourownpace.Ourcoursesarebestsuitedforpeople whowanttocontinueworkingwhile,studying andearn acertificate thatcanturnoutto bebeneficial fortheir career growth. Well let’snotmake ithardon ourselves…so letme goahead andtrytoexplainitin a simplerway,Financialmodelingisthe process,a way to puttogethera financial representationofabusinessorwecansaythatit’screating asummaryofbusiness operations.Thistaskof buildingamathematicalmodelhelpsfinancialanalyststoforetell likelyperformance andearningsofthe company in future. Studyingthesefinancialmodels/representationstheanalystsusenumerousprojection formulas,valuationsandtheoriestorecreatebusinessoperations,oncethesefinancial modelsarecompleteditdemonstratesa numericaldescriptionofthebusiness procedureswhichthenisusedforfuturebusinesspredictions.Inarecentsurveyithas beenfoundthat96%ofanalystsuseexcelspreadsheetsasaprimarytooltocreatethe financialmodels.

2. How can one learn to build a financial model in Excel and isithard? To beveryfrankandhonesttheanswertotheabovequestionisyes,ifyou’retryingto learnitoutonyourown,butwiththehelpofaprofessionalteachingin“FinancialData Modeling”programthisbecomesaloteasiertounderstand.Secondlyit’sactuallynotan issueofwhetherfinancialdatamodelingishardornotasittotallydependsonyour purpose and keennesstoacquire new skillsorto brushupyourcurrentskillset.Letme goaheadand explain somethingslikesome techniquesinExcelandSkillsthatwillbe helpful to knowandhave whengoingfora FinancialData ModelingCertificationcourse. Someof Financial Modeling SkillsandTechniquesEvery FinancialAnalystMusthaveandknow: Financialmodelingis theabilityofbuilding a dynamicstructure(Excel Spreadsheet) thatcanbeused toassessinvestmentopportunities,acquisitions&mergers,capital buildingortoassesscompany’spastorfuturefinancialpresentations.Someofthemost importantfinancialmodelingskillsneeded to bea top-notch financial analystare: StrongExcelskills:Tocreatefinancialmodelscansometimesbemoreofatalent than a science.Knowing thingslikemain keyboard shortcutshelpsin saving time resultinginbuildingmodelsmorequickly.Itwillbeofgreatadvantageifyouwillknowall themainformulasandfunctionsbyhearttocarryoutcalculationsandfinancialanalysis. A firmunderstandingof accounting:In orderto buildandsortoutafinancialmodel, it’simportantthatyoushouldpossessa soundknowledgeofaccounting basics.It’s importantthatyouhaveadequateaccountingskillstoknowhowto read financialreport, how to analyze statements,and how to putthembackand forth. Excellentproblemsolvingskills:Goodfinancialanalysthasthecapabilitytothink logicallyand in a verywellthoughtofmanner.Whenmaking a financialmodel,itis essential to follow a logicalflowoforderso thatyourteammatescanwithoutdoubt understand whatyou have preparedwhen theylookintoyourExcel sheets. HistoricalData:Hereallyourassumptionsforthefutureyearsarebasedonyour historicaldataofthecompany.Understanding thehistoricaldatacan giveussome importantandclose interrelateddataforthefuture ofthecompany. Scenarioanalysis model:Thispracticeinvolvescreatingascenariofromaseriesof inputsorvariablesmergedcollectively.Mostbusinesseswillgowith 3scenariosfora phase:A‘basicphase’,a ‘bestphase’ and a ‘worstphase’.In a worstcasescenario you maychoosea mixtureofkeyvariablesandlookattheprobabilityofbusinesssurviving intheworstphasein agiventime.Youcan buildascenarioforanysituationofspecific setofvariablesthathelpsyououtinplanning yourbusiness.There’snoneed tolimitit on macrosortop-level variablesalso. The 3 statementmodel:Youmusthaveprobablyheard ofthe3 statementmodelby now.Ifyourhistoricaldataiswellstructuredand ifitscloudbasedthenit’sveryeasyto createthesereports.Generating aforecaststatementofthesereportsalsoisn’tthe

3. samethingasmodelingandthesestatementsaretheresultofyourmodel,notthe modelitself.Generatinga forecastversionofthesereportsalsoisn’tmodeling.The statementsaretheresultofyourmodel,thoughnotthemodelitself.Yourmodelissetup asa spreadsheetpageofassumptionandmetricsassociatedbyformulas.Financial statementsaresetuponothersheetsthatarealsolinkedbyformulassoitgivesyouthe capabilitytomakealterationstotheassumptionsandseethefinancialoutcomesflow throughoutthe model.And nowwe are modeling folks!!! • Conclusion: • AtMindcypress.comcertificationinFinancialDataModelinggiveslearnersanedgeover theothersinthesamefield,asthiscourseisanexcitingareafordatasciencelearners. In thiscoursefromMindcypressyouwillstudydensitymodels,linearandnon-linear sequentialdata with topics like: • Excel as a Tool forFinancial Modeling • Referencing &Excel Shortcutsfor FinancialModeling • Projecting Cash FlowStatement • Advanced Toolsin Excel forAuditingFinancialModels • UnderstandingMacrosetc. • ThecourseofferedbyMindcypressaredeliveredinthreechoicesasperyourneedlive virtualclassroom(LVC),Physicallearning/classroomlearningande-learning/self- learning to knowmoreaboutthecoursegetintouchwithourcustomersupportteam @Mindcypess.com oneofthepioneering e-learningsitesoftheworld. Resource:https://blog.mindcypress.com/p/an-intro-to- financial-data-modeling MindCypresswillhelpyouwiththetraining.Contactustoday!