Financial Modelling: Process

Main Project: Introduction to Financial Modelling

Course: The Marquee Group

Financial Modelling is a mathematical model designed for building an abstract representation of a real world financial situation.

• They also are used in strategic planning to test various scenarios, calculate the cost of new projects, decide on budgets, and allocate corporate resources.

Weeks before joining the Summer Accelerator Program, I received an email from the Finance Department presenting an Introduction course of Financial Modelling through the Marquee Group. I've read from many internships that this was a skill requested or in preference for candidates.

The course is divided into 10 chapters: Financial Model Design, Modelling Technical Skills, Revenues, Operating Costs, Financial Statements, Depreciation, Income Taxes, Working Capital, Debt & Equity, Pulling it up together.

The course provided me with a company scenario, Precision Molding, where this company was requesting a Financial Forecast of their company. I was provided the excel sheet where through each completion of the chapter I was given instructions on how to work along the instructor in completing the assignment.

To learn more properly, I printed the excel sheets and wrote the formulas on the required sections. I worked with the Instructor on completing the assignment based upon the instructions. In addition, I wrote on a separate sheet of paper notes to recall a more detailed analysis of the financial model. The picture above is an example.

Final thought: Although I learned about why's, what and how of preparing a financial model, I'm still not confident in preparing one myself. As said before, it is an introduction course therefore if I wish to keep learning more and gain strength in this skill I need to enroll in another course.