FAST Modeling Skills

FAST Modeling Skills (I101) is an online course delivered in 8 weekly modules. Within those 8 weeks you will become a modeler who:

• is faster at the job
• makes fewer mistakes
• has a better understanding of excel functionality
• can solve complex modeling problems by breaking them down into simple elements and
• has the confidence to build a complete model from scratch.

In addition you will build models that are easier:

• for anyone to review and understand and
• for colleagues to adapt when you’re not around.

If you participate fully in the course and undertaken all the homework assignments but feel by the end of the 8 weeks that we have not delivered on that straightforward commitment, we’ll give you all your money back. It’s that simple.

The course covers model design, model construction techniques, and basic financial accounting principles. Week by week you will learn to apply FAST modeling principles to improve your modeling design, style, structure, and productivity, as you gradually build a valuation model based on a corporate acquisition case study. The techniques you will be taught are applicable to a wide variety of modeling topics and relevant to modelers accross sectors.

FAST Modeling Skills is aimed at those people who need to build or run financial models. For those with no modeling experience, this course provides a solid introduction to real-world financial modeling. For experienced modelers, this course will help the quality and productivity of your modeling.
It is appropriate to financial modelers in the corporate, business modeling, banking, treasury, financial advisory, government and infrastructure sectors.

The course includes an overview of term debt interest and repayment calculations, inflation indexation, capex and depreciation, and deferred tax. Theory is de-emphasised in favor of detailed instruction and hands-on practice with good model design and modeling techniques.

There are two options available for this course:

1. 8 weekly live tutorials plus personal support package - $1750
2. 8 weekly live tutorials only - $1150

If you’re not yet sure if this course is for you, your welcome to sign up for a free trial. You will get full access to the first two weeks of the course including all relevant course materials. If you decide the course is not for you there is no obligation to continue.

This course is delivered online. Find out more about the benefits of Financial Mechanics Online Financial Modeling Training programme and the options available for online training.

We run a number of these courses concurrently to suit different time zones. See the table above for the schedule of upcoming courses.

Live online tutorials take place on the same time and day over the 8 weeks of the course. During the live online session there will be plenty of time for you to ask questions. You will also be give homework assignments each week. Depending on the training options you have chosen, the homework modeling you do will be reviewed by our instructors and detailed, individual, scored feedback will be returned to you prior to the next tutorial.

Each live online tutorial will follow the same format

• 25 minutes: Round up of key issues and questions from the previous week’s homework assignment.
• 55 minutes: Tutorial on a new topics for that week with a demonstration by the instructor and an interactive discussion.
• 10 minutes: Setting of a new homework assignment for the coming week

Over the 8 weeks of the course you will progress towards producing a fully-functioning financial model, covering subjects such as capital expenditure and depreciation, deferred tax, constructing the primary financial statements, term debt calculations and valuing forecast dividends.

In between each weekly tutorial, as you progress through the homework assignments and review the course material, you will be able to post questions and share your thoughts with other course participants on a dedicated course forum. Your instructors will check into the forum daily and respond to unanswered questions and provide you with further support.

Agenda

The 8 sessions of the course cover the following topics:

Session 1:

• Review of pre-course tutorials (note: you will be given a number of pre-course videos and tutorials to watch in your own time covering a number of core skill areas)
• Key principles of the FAST modeling standard
• comparison of different approach to model structures
• setting up timing architecture
• modeling revenues and expenses using flags and indexation factors
• Assignment 1: Setting up timing in your model and calculating revenues and opex

Session 2:

• Capital expenditure and depreciation with introduction to the ‘balance corkscrew’
• Different methods of calculating depreciation including discussion on the relative merits of the various excel ‘lookup’ functions
• Assignment 2: Add capital expenditures and depreciation schedules to your model

Session 3:

• Senior debt interest and principal calculations
• Common issues with interest calculations
• Roughing out basic financial statements using placeholders and introduction to alternative sign conventions
• Assignment 3: Add senior debt and financial statements to your model.

Session 4:

• Input control: scenario and sensitivity management
• Output control: track sheets and delta sheets
• Assignment 4: Add model control elements

Session 5:

• Structured approach to reliable indexation factors; forecast price indices vs. contract reference price levels.
• Common issues with indexation calculations
• Assignment 5: Add indexation factors and connect into appropriate places in your model. Add scenario management structure

Session 6:

• Taxation: actual cash tax paid vs. P&L tax charge and deferred tax;
• Model control: Error checks and alerts
• Assignment 6: Calculation tax payments and expense. Add error checking and alert management.

Session 7:

• Presentation of model outputs results
• Design and layout of summary sheets
• Principles of data visualisation
• Assignment 7: Addition of summary sheet (prizes for best and worst layouts!)

Session 8:

• Share capital account; calculating profit-constrained dividends.
• Present value of shareholder distributions as primary DCF valuation methodology;
• model flexing
• wrap-up on ancillary points raised and topics of interest to participants
• Setting of final homework assignment: Bid game with prizes!

You should have a basic understanding of MS Excel (e.g. syntax of IF statement, purpose of $s for anchoring cell references). You should also ensure that you have sufficient broadband capacity and reliability to support live online video sessions of around 1/2 hours.