FINANCIAL MODELLING AND ANALYSIS
ONLINE SHORT COURSE
Learn the fundamental concepts required for Excel-based financial modelling and forecasting.
8 weeks, excluding orientation.
8–10 hours of self-paced learning per week, entirely online.
Email: uctonline@getsmarter.com
Call: +27 87 551 8063
ABOUT THIS COURSE
Highly valued but thinly understood, financial modelling combines accounting, finance, and business metrics in Excel to summarise a company’s expenses, earnings, and prospective trajectory. Critical business strategies rely on accurate forecasting through financial models to calculate the impact of a future event or decision. The Financial Modelling and Analysis online short course from the University of Cape Town (UCT) introduces you to these fundamental concepts so that you’re able to create mathematical models in Microsoft Excel that reflect the historical, current, or projected value or financial performance of a company. Over eight weeks, you’ll learn the frameworks for short- and long-term financial forecasts in a practical and accessible way. Following a course-long case study, the curriculum augments your financial knowledge and helps enhance your abilities in financial modelling to be able to make strategic business decisions.
“A financial model has become a critical tool used by organisations to understand business risks and make important strategic decisions. An effective model is robust and flexible, yet user-friendly, so that it can be used to analyse the impact of operational parameters on the value and viability of a business.”
PwC (2019).
WHAT THIS COURSE COVERS
This highly practical course is aimed at newly qualified, or working, finance professionals who want to improve their knowledge on modelling and forecasting. Over the course of eight weeks, you’ll acquire techniques and tools to help develop your financial modelling and strategic business decision-making skills.
Following an ongoing case study, you’ll learn to create the three statement model: balance sheet, income statement, and cash flow statement. You’ll gain knowledge of sensitivity and scenario analyses, investigate financial models for various business types, and understand the impact that using different inputs will have on the outputs generated by a financial model. In addition, you will develop your critical thinking abilities to better understand the financial characteristics and interpretations of businesses and their financial forecasts.
A POWERFUL COLLABORATION
Since 2007, UCT has partnered with digital education expert GetSmarter to take the university’s renowned education online. The move towards delivering education through the online model is strongly driven by the university’s goal to broaden access to education from Africa's leading university to those who previously would not have been able to access it due to geographical constraints. UCT’s scope extends to all areas of sub-Saharan Africa, and opportunities are being investigated for providing both UCT and its future students with opportunities for further growth.
ABOUT UCT
Founded in 1829, UCT has a proud tradition of academic excellence and effecting social change and development through its pioneering scholarship, faculty, and students. UCT’s reputation for excellence is underpinned by its distinctive research, led by its distinguished faculty, many of whom are leaders in their field.
ABOUT GETSMARTER
GetSmarter, part of edX, helps working professionals gain verifiable skills from leading global universities and institutions to thrive in an ever-changing work environment.
Technology meets academic rigour in GetSmarter’s people-mediated model, which enables lifelong learners across the globe to obtain industry-relevant skills that are certified by the world’s most reputable academic institutions.
As a student of this course, you will also gain unlimited access to edX’s Career Engagement Network at no extra cost. This platform will provide you with valuable career resources and events to support your professional journey. You can look forward to benefits including rich content, career templates, webinars, workshops, career fairs, networking events, panel discussions, and exclusive recruitment opportunities to connect you with potential employers.
WHAT YOU’LL LEARN
You’ll be welcomed to the course and begin connecting with fellow students, while exploring the navigation and tools of your Online Campus. Be alerted to key milestones in the learning path, and review how your results will be calculated and distributed.
You’ll be required to complete your student profile, confirm your email address for the delivery of your digital certificate, and submit a digital copy of your passport/identity document.
Explore the fundamental skills and best practices required to become proficient in Excel-based financial modelling.
- Discuss the importance of accurate financial modelling in business and investment environments
- Describe how various types of Excel formulas and modelling functions would be helpful to your industry
- Illustrate usage of charting functionality in Excel
- Identify formatting practices and various ways of troubleshooting Excel-related functionality
- Resolve incorrect or dysfunctional formulas in Excel
Discover the various accounting statements, their purposes, and how they are related and interpreted.
- Review an understanding of accounting and financial terminology and principles
- Indicate components of the balance sheet and income statement and how they relate to each other
- Describe how the income statement and balance sheet are used in your role
- Explain the components that make up the cash flow statement
- Explain the measures that can be taken to avoid companies using cash flow statements for fraudulent activity
- Calculate working capital and free cash flow to firm
- Determine the key ratios required in financial modelling and analysis
Discover how to create a three statement model, comprising the balance sheet, income statement, and cash flow statement.
- Review the information related to the case study
- Articulate the process of creating an interlinked balance sheet, income statement, and cash flow statement in a three statement model
- Resolve the ambiguities involved in the process of the creation of the three statement model
- Interpret the ratios that are applicable to the three statement model
- Illustrate the ratios in the three statement model using Excel's charting functionality
- Construct an interlinked three statement model that is comprised of an income statement, balance sheet, and cash flow statement
Explore the various ways of forecasting and extending the three statement model, which is driven by underlying business assumptions.
- Identify the various types of revenue models
- Explain the process of deciding on realistic forecast assumptions
- Practice forecasting based on historic data in the three statement model
- Practice forecasting overheads, variable costs, assets, and working capital
- Test the functionality of the model
- Develop a forecasted three statement model
Discover the differing degrees to which varying inputs affect outputs in a model.
- Recognise the difference between a sensitivity and scenario analysis
- Describe how a business's growth rate impacts its net income
- Practice simulating scenarios through scenario analyses
- Determine output using information from a scenario analysis
Discover the differences within financial statements in relation to differences in industry.
- Identify the key ratios for retail, service, and tech industries
- Discuss the differences between inputs and outputs based on the industry
- Summarise the key metrics used in the retail, service, and tech industries
- Compare the differences in financial statements between the retail, services, and tech industries
Explore how financial models are used in strategic business decisions.
- Describe ways on how to free up cash flow through the working capital cycle
- Explain why companies need to hold cash
- Explain the concept of cost per capital
- Articulate the advantages and disadvantages of funding expansion through the use of debt
- Assess how variations in financial models impact strategic business decisions
- Recommend strategic business decisions with the use of financial modelling
Discover how a financial forecast is applied into a discounted cash flow valuation model.
- Demonstrate an understanding of the concept of the time value of money
- Calculate a company's weighted average cost of capital
- Execute terminal value and terminal value growth rate calculations
- Critique a discounted cash flow analysis
- Construct a discounted cash flow analysis for the case study company
WHO SHOULD TAKE THIS COURSE
Designed for current and aspiring financial analysts, this highly practical and challenging course explores how financial models are used to make strategic business decisions. Junior to mid-level finance professionals eager to harness the predictive value of these models will benefit from the weekly outcomes. Additionally, the expert-led curriculum will benefit experienced professionals who would like to develop the skills needed to forecast and model for different types of businesses.
THIS COURSE IS FOR YOU IF YOU WANT TO:
UPSKILL
You’re looking to develop and improve your financial modelling skills, with the ability to create a three statement model.
GROW YOUR CAREER
You’d like to advance your career by understanding key financial concepts and receive validation in the form of a UCT digital certificate.
MOVE INTO A NEW ROLE
You’re preparing to transition into a new role, organisation or industry, and are seeking practical tools to be able to make a positive impact from day one.
ABOUT THE CERTIFICATE
Get recognised for your knowledge when you earn an official certificate of completion from UCT – Africa’s leading university. Powerful proof of your new forecasting competencies.
Assessment is continuous and based on a series of practical assignments completed online. In order to be issued with a digital certificate, you’ll need to meet the requirements outlined in the course handbook. The handbook will be made available to you as soon as you begin the course.
Your digital certificate will be issued in your legal name and sent to you upon successful completion of the course, as per the stipulated requirements. Please note, due to additional administrative requirements, at times UCT course certificate delivery may be delayed by several weeks/months.
WHO YOU’LL LEARN FROM
This subject matter expert from UCT guides the course design and appears in a number of course videos, along with a variety of industry professionals.
YOUR COURSE CONVENOR
Dr Lucian J Pitt
Senior Lecturer (Finance), Department of Finance and Tax, UCT
Dr Pitt’s academic career is supplemented by more than twenty years in the corporate sector, during which time his focus was primarily on financial control, business development, and economic analysis. In academia, his core area of focus is corporate finance, and he also has a keen interest in financial modelling, company and asset valuations, and investment analysis and management. His personal mission is to pursue lifelong learning and to inspire others to do the same.
SUBJECT MATTER EXPERT
Tarryn Valle
Finance Educator and Doctoral Student
HOW YOU’LL LEARN
Every course is broken down into manageable, weekly modules, designed to accelerate your learning process through diverse learning activities:
- Work through your downloadable and online instructional material
- Interact with your peers and learning facilitators through weekly class-wide forums and reviewed small group discussions
- Enjoy a wide range of interactive content, including video lectures, infographics, live polls, and more
- Investigate rich, real-world case studies
- Apply what you learn each week to quizzes and ongoing project submissions, culminating in the ability to use different modelling and analysis techniques to perform financial forecasts
YOUR SUCCESS TEAM
GetSmarter, with whom UCT is collaborating to deliver this online course, provides a personalised approach to online education that ensures you’re supported throughout your learning journey.
HEAD TUTOR
A subject expert who’ll guide you through content-related challenges.
SUCCESS ADVISOR
Your one-on-one support available during university hours (8am–5pm SAST) to resolve technical and administrative challenges.
GLOBAL SUCCESS TEAM
Available 24/7 to solve your tech-related and administrative queries and concerns.
“If you want to pursue a career in finance, it is of utmost importance for you to know the latest trends in your domain, and more importantly how to use automation in your day-to-day activities as a finance professional.”
Avadhut Nigudkar
Founder, FinanceWalk
TECHNICAL REQUIREMENTS
BASIC REQUIREMENTS
In order to complete this course, you’ll need a current email account and access to a computer and the internet, as well as a PDF Reader. You may need to view Microsoft PowerPoint presentations, and read and create documents in Microsoft Word or Excel.
BROWSER REQUIREMENTS
We recommend that you use Google Chrome as your internet browser when accessing the Online Campus. Although this is not a requirement, we have found that this browser performs best for ease of access to course material. This browser can be downloaded here.
ADDITIONAL REQUIREMENTS
Certain courses may require additional software and resources. These additional software and resource requirements will be communicated to you upon registration and/or at the beginning of the course. Please note that Google, Vimeo, and YouTube may be used in our course delivery, and if these services are blocked in your jurisdiction, you may have difficulty in accessing course content. Please check with an Enrolment Advisor before registering for this course if you have any concerns about this affecting your experience with the Online Campus.
