Financial Modelling: Credit 3 days
Information
We listen to our clients and develop quantitative workshops which are informative and add real value. All our workshops are 'hands-on' with theory and demonstrations followed by 'leaning by doing'. This ensures that we provide real-world methods and internationally recognised techniques that can be successfully implemented immediately after the workshops.
Objectives
This is an essential course for those who require an understanding of Credit analysis, Credit modelling , credit risk management and Corporate Finance.
Previous experience with excel is preferred.
Schedule
Day One - Model Design and Historic Analysis
Module 1: Review of Risk Evaluation and Model Planning
Credit modelling framework for distressed companies
Macro, industry and company risk
Non- financial factors
Design method and best practice
Exercise: redesign initial template
Module 2: Balance Sheet and Income Statement
Case study outline
Model layout
Advanced Excel techniques
Exercise: building initial template
Module 3: Ratios
Annual reports
Key ratios
Sustainable growth
Avoiding modelling mistakes
Exercise: completing and reporting on balance sheet and ratios
Module 4: Auditing and Testing
Types of errors
Spreadsheet risk
Auditing methods
Exercise: auditing model template
Day Two - Financial Statement and Cash Flow Analysis
Module 5: Cash Flow Analysis
Derivation of cash flow from balance sheet
Cash value drivers and uses of free cash flow
Sustainability and growth of cash flow
Exercise: completing cash flow and calculating sustainability
Module 6: Forecasting
Common forecasting errors
Excel forecasting methods
Forecasting credit statements
Exercise: completing and checking a forecast
Module 7: Loan Cover
Cover ratios
Establishing minimum cover ratios
Exercise: introduce a loan and calculate the minimum covers
Module 8: Sensitivity Techniques 1
Testing the model
Building in sensitivity to the model design
Exercise: testing forecasts and loan covers
Day Three - Financial Statement and Cash Flow Analysis
Module 9: Sensitivity Techniques 2
Risk quantification
Dynamic scenarios
Charting
Exercise: adding risk techniques
Module 10: Bankruptcy Models
Failure and deterioration
Ratio models
Bond ratings
Exercise: building a bankruptcy schedule
Module 11: Asset Management
Asset management
Deriving value of security
Exercise: calculating the residual security risk
Module 12: Model Completion and Reporting
Producing management summaries and charts
Dashboards
Presentation techniques
Exercise: completing the final model
Register interest
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.