financial data modeling course in dubai

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FINANCIAL DATA MODELING itsapplications, Uses
and training.
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What is Financial Modelling?
? Overview of financial statements ? Planning vs
modelling ? The what if mind-set ? The
importance of assumptions ? Dealing with
uncertainty ? What does a financial model
communicate? ? Market metrics such as conversion
rates
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The Financial Statements
Financial Statement Overview
Income statement or Profit or Loss Statement How much money we have or will have made and spent over a period of time? Shows Financial Performance
Statement of Financial Position or Balance Sheet How many valuable things we own and how many things do we owe plus what is our equity (shareholdings money made held till date) at a chosen point in time? Assets Liabilities Equity Shows Financial Health
Cash Flow Statement How much cash has entered and exited in the business? What is the net cash flow over a period of time?
Capitalisation Table How have we distributed our equity between founders, employees and investors? Pre money valuations and Post Money valuations Shows rounds of funding and results
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Planning Vs Modelling
Planning Modelling
Process of creating an action plan Process of creating and valuating assumptions
Based on targets Based on assumptions and variables
Input or Output Driven Input Driven
Part of a Business Plan Mostly Guides Business Planning
Steps are outlined to achieve goals Presents how the goals set will create value
Establishes the outcomes on intentions, more based on ifs than what ifs Explores what ifs and the outcomes
Explains the steps needed to achieve goals Explains how the steps taken will generate an outcome
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The what if mind set
? The process of thinking through scenarios and
asking questions on a range of well
thought out assumptions ? Enables validation of
assumptions used for the financial
model ? Enhances understanding of the business
and financial model ? Adds flexibility to the
financial model by changing inputs ? Shows
effects of completing set goals and milestones
based on how well they will be achieved
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The Importance of Assumptions
? Assumptions are the basic map for creating any
model ? The assumptions decrease
uncertainty ? The financial model is as good as
the assumptions used to build the
model ? Assumptions are the key to achieving
buy in from investors, partners and
employees ? Assumptions guide not only the
financial but also business modelling
planning ? Assumptions have to be well thought
out, researched and tested
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Dealing with uncertainty
? Uncertainty is the fear of the unknown ? or
the risk faced from variables that are not
accounted for ? and those variables that cannot
be evaluated ? Uncertainty is reduced through
assumptions, modelling and research ? Uncertainty
is reduced as assumptions add some level of
certainty ? A model that responds to range of
inputs decreases uncertainty ? Uncertainty is
productive as it keeps us sharp and prepared!!!!
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What does a Financial Model Communicate?
? It shows that you understand your business and
how it works. ? It shows how your assumptions
and plans will generate value ? It allows
investors to evaluate some aspects of your
business ? It shows how a range of inputs will
impact on the outputs i.e profits and costs ? It
shows how your business will likely perform over
a period of time ? A good financial plan shows
that you have had a reality check and are not
working on guesses and blind devotion
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Importance of Marketing Metrics
? Your key assumptions will be based on how your
marketing will work? ? How do you plan to reach
your target market? ? How do you plan to turn
your target market into customers? ? How much
time and cost will you incur in the process of
gaining customers? ? How much value will each
customer add to your business? ? What are the
expected range of conversion rates for marketing
efforts of your business?
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Summary
? The financial model is expressed through
financial statements. ? Financial models are
dynamic, assumption based and input
driven. ? Financial models are built with a
what if mind-set. ? Financial models deal with
uncertainty, but do not eliminate
it. ? Financial models communicate information
to aid decision making and planning. ? For a
start up, marketing metrics drive the creation of
the financial modelling.
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Boost your career with financial data modeling
course in Dubai by Mindcypress.
UAE 2901 57, PRIME TWR , Business Bay Dubai ,
Dubai 79998 U.A.E 971-52-356-0057 971 50 263
0850 support_at_mindcypress.com Course page
https//www.blog.mindcypress.com/what-is-the-advan
tage-of-financial-modeling/