- Financial Modelling
- Cash Flow
- Scenario Analysis
What you’ll learn
- Interpret financial performance using key profitability, liquidity and efficiency measures.
- Structure an Excel financial model with clear assumptions and linked calculations.
- Forecast revenue, operating costs and working capital using business drivers.
- Develop a budget and cash flow forecast to identify funding needs.
- Compare scenarios and assess their effects on profit and cash.
- Present financial findings in a clear management summary.
Course Description
Build a clearer view of business performance and future funding needs through practical financial analysis and modelling. This course combines financial interpretation with guided Excel exercises covering revenue, costs, budgets, working capital and cash flow.
Suitable for business owners, managers, analysts and finance personnel with basic Excel skills and a working understanding of financial statements, the workshop uses a simplified business case and a structured model template. Participants will develop a linked profit forecast and cash budget, test key assumptions and prepare a summary that supports business planning and resource allocation.
Course Contents
Module 1: Understanding Business Financial Performance60 minutes
- Understand the relationships between profit, assets, liabilities and cash.
- Analyse revenue growth, gross margin and operating profitability.
- Review selected liquidity and working capital indicators.
- Identify financial questions that the forecast should address.
Practical activity: Review sample financial information and identify the business’s main performance issues.
Module 2: Structuring the Financial Model90 minutes
- Separate historical data, assumptions, calculations and outputs.
- Define forecast periods, units and modelling conventions.
- Set up assumptions for sales, pricing, costs and payment terms.
- Build linked formulas and basic model checks.
Practical activity: Set up the forecast structure and assumption sheet in the supplied workbook.
Module 3: Forecasting Revenue, Costs and Profit90 minutes
- Forecast revenue using volume, pricing and growth drivers.
- Model variable costs and fixed operating expenses.
- Estimate gross profit and operating profit.
- Compare forecast results with historical performance and budget targets.
Practical activity: Build a monthly profit forecast and assess changes in business margins.
Module 4: Forecasting Working Capital and Cash Flow90 minutes
- Model the timing of customer collections and supplier payments.
- Estimate cash tied up in receivables, inventory and payables.
- Include planned capital expenditure and simplified financing movements.
- Calculate opening cash, net cash movement and closing cash.
Practical activity: Build a cash budget and identify periods with potential funding shortfalls.
Module 5: Budgeting and Scenario Analysis90 minutes
- Develop base, upside and downside assumptions.
- Test changes in sales, costs and collection periods.
- Compare the impact on profitability and cash requirements.
- Identify practical responses to weaker financial performance.
Practical activity: Compare three scenarios and recommend budget or cash management adjustments.
Module 6: Model Review and Financial Recommendations60 minutes
- Check formula consistency and assumption links.
- Reconcile the cash roll-forward and investigate unusual outputs.
- Summarise financial indicators, forecast results and scenario differences.
- Explain key assumptions and limitations to decision-makers.
Practical activity: Prepare a financial summary with recommended management actions.