What is Financial Modeling?
Financial modeling is generally a spreadsheet representation of business metrics in the form of a spreadsheet to forecast a company’s financial performance in the future. The model is typically built based on a company’s past and present operations and assumptions about the future. Creating an effective model requires preparing an income statement, a cash flow statement, a balance sheet, and supporting schedules. That is the foundation for building other advanced financial models such as discounted cash flow (DCF) model, mergers and acquisitions (M&A), and leveraged buyout (LBO) models.
Why is Financial Modeling Important?
Financial modeling is one of the most valuable tools for decision-making and performing financial analysis. It simulates the impact of essential variables so organizations may plan a course of action to avoid risks and prepare for any situations that may arise in the future. Financial modeling helps businesses make informed decisions in the following areas:
- Budgeting and forecasting
- Valuation of a company
- Mergers and acquisitions
- Risk management
- Forecasting and budgeting
- Raising debt or equity
- Making internal investment
Can I Learn about Financial Modeling Online?
A financial modeling course can provide an exhaustive understanding of every aspect of the financial industry and help you build the foundational knowledge you need to master the core concepts. Such programs can equip you with the tools, techniques, and strategies that can be analyzed and implemented. Additionally, with an online course, you can learn and practice at your own pace. If your objective is to achieve pro-level efficiency, taking a short-term course taught by experts in finance will provide you with the essential skills and proficiency to start creating high-grade financial models.
What Kind of Career Can I Get with a Background in Financial Modeling?
Financial modeling is a highly viable skill and provides a plethora of opportunities for finance professionals. According to the US Bureau of Labor Statistics, financial and investment analysts make a median annual salary of $91,580 in the US, making it a lucrative career option. Familiarity with financial modeling is essential for job profiles such:
- Investment Banking
- Corporate Finance
- Research Analyst
- Credit Analyst
- Financial Planning
- Stock Market and Personal Finance
- Equity Research
Why Take an Online Course at Emeritus?
Each Emeritus online course is designed by a team of experts keeping key learning outcomes. We use the backward design methodology to develop instruction for learners of all ages. This enables us to craft unique, interactive, learning experiences that include a combination of assessments, hands-on activities, skill application, and more.
Emeritus also collaborates with the best universities and faculty around the world to curate a course curriculum that can effectively tackle present challenges in the industry, while preparing students for the trends and risks in the future. Our courses consist of assignments, exams, capstone projects, networking opportunities, a fine balance of practical and theoretical concepts, and the opportunity to learn from the top minds in the industry. This adds to a holistic experience for each learner.
We are also clear in our goal of providing courses that are standardized in quality. This is done by adhering to the standards set by a global organization called Quality Matters which focuses on providing quality standards for online and innovative digital teaching and learning environments. The rigorous criteria ensure all our learners invest in easily accessible and affordable quality education.