The courses in the Core Skills program contain the foundations needed to build and use economic models and conduct data analysis in Excel.
The definition of modelling · Purpose, uses, application areas Influence diagrams · Links between modelling and data analysis · Generic model types. Principles to design and build useful models that support decisions. Decision criteria in business and finance. The skills required to be a well-rounded financial modeller and analyst. Excel as a modelling tool · Creating formulas · Manual and automatic calculation · Mapping a model concept into calculations · Dependency and precedents tracing. Copy, paste, insert, delete, undo · Find/Replace · Wildcard characters · Named ranges · GoTo and GoTo Special · Efficient selection of ranges · Navigation around a model. Formatting · Conditional formatting · Custom formatting. Sensitivity analysis · DataTables · One-way analysis · Two-way analysis · GoalSeek. Principles of effective visual communication · Using graphs and charts. Tips and tricks · Short-cuts and KeyTips · Core Excel functions to capture logic, conditionality, comparison and aggregation. 8 Quizzes.
Payback periods · Scenario modelling · Lookup functions · Growth formulae and present values. Measuring growth · Classical and logarithmic measures · Growth calculations · Inflating and discounting · Time-value-of-money. Risk-free rates. Interest calculations. Compounding methods and formulas · Accruals · Bootstrapping · Yield curves. Time-period conversions · Annuities and terminal values. Economic Evaluation. Calculation of returns · Internal rate of return · Limitations to calculation of returns · Discounted cash flow, net present value · Calculations of loan amortisation and mortgages, implied rates and values. 5 Quizzes.
Databases · General versus database structures · Excel Tables · Filters and sorting · Advanced filters and criteria-based extraction · PivotTables · Introduction to PowerPivot and the data Model · Excel functions for data analysis· Aggregation functions · Database functions · Dynamic sorting · Basic aspects of data manipulation, cleaning, splitting and integration · Unique values and duplicates · Statistical functions · Single variable statistics (e.g. averages, percentile, standard deviations) · Confidence intervals · Multi-variable statistics (e.g. correlation, rank correlation, Kendall’s tau) · Linear regression · Multiple regression · Array calculations and bespoke logic. 5 Quizzes.
Context and objectives. Addressing the right decision · Frameworks and tools for analysis and development of business strategy · Decision criteria · Economic criteria · Ratio analysis · Dupont analysis · Determination of model variables, flow and granularity · Horizontal or vertical time axis · Links to interest compounding · Data sources, structures and model types · Database approaches to modelling · Historical versus forecasted analysis · Logic reversals · Updating requirements · Structural limitations versus parameter flexibility · Allocations, linear and non-linear · Time allocation with triangles · Corkscrew structures · Waterfall allocations · Checking consistency and error-elimination. Designing for modularity. Approaches to linking modules · Selection and exclusion structures · Consolidation and inclusion structures· Appending data sets together (introduction) · Modelling sequences of decisions · Best practices in Excel modelling · Choices of structure · Principles of transparency · Dealing with circularities. Complexity reduction and optimisation.