Financial Forecasting: Concepts and Applications - Evening

This program is intended for the financial analyst, corporate banker or credit executive who needs to develop or refresh knowledge of forecasting concepts and techniques. This two evening program provides a value added, comprehensive and intensive immersion into the art of preparing and interpreting financial forecasts. This knowledge is indispensible to bankers and analysts wishing to further their careers in all aspects of commercial and investment banking, including syndications, deal origination, credit and underwriting, and M&A.

No sessions currently available. Contact client services to get the next available date.
Anyone who has an interest in credit analysis, underwriting or corporate banker role looking to expand or review their understanding and ability to apply forecasting concepts and tools.
No advance preparation required.
Students will be able to:
  • Demonstrate a practical common sense and theoretical understanding of the core concepts of forecasting concepts
  • Derive value added conclusions from the output produced by financial projections
  • Use projections as a road map to draw value added conclusions about the borrower's projected debt capacity and financial flexibility
  • Understand the importance of financial forecasts as strategic, business development and credit structuring tools
  • Size up a credit transaction using proven forecasting techniques
  • Understand the conceptual approach of using financial forecasts to craft loan agreement covenants
Attendance at a credit training program, or equivalent corporate banking experience. Prior financial modeling experience is helpful, but not required.
Critical Assumptions and Value Drivers
  • Balance Sheet (Working Capital accounts) and Income Statement
  • Other Drivers include CAPEX, Debt Maturity schedule, Tax Assumptions (Cash flow impact of cash versus deferred taxes)

Purpose of Multiple Projections Scenarios

  • Base, Downside and Management case scenarios (range of outcomes)

Long-term Debt Maturity Analysis

  • Using the financial footnotes of the annual report to develop long-term debt maturity profiles

Using Forecasts as a Tool for Crafting Financial Covenants

    Reading the Output

    • Financing the projected deficit and applying surplus cash
    • Discussion of management's financing and investing options in a cash deficit or cash surplus forecast scenario

    Drawing Conclusions

    • Strategic interpretation of output
    • Analysis of borrower's debt capacity and financial flexibility

    Legal Claims on Cash versus Discretionary Uses of Free Cash Flow

      Mini-Case Applications Using a Standard Projection Model

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.