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The Importance of Financial Analysis in Decision-Making and Strategy

Posted on by Imarticus Learning
Reading Time: 3 minutes

The Importance of Financial Analysis in Decision-Making and Strategy

Do you know the importance of financial analysis in decision-making? We got you!

Many people think that financial analysis is only used to make investment decisions. However, financial analysis can be used in a variety of decision-making situations.

Your business gets its success from 5 factors. Brand reputation and a detailed analysis of existing capabilities are the first two. While the awareness of limitations, planned implementation and monitoring of strategies are the next. In a competitive environment, only informed decisions lead to growth. Risk management and financial statement save your business from uncertainties.

When you’re in a position of responsibility, every decision shapes the future of your company. The onus of making the right choices for hundreds of employees tags along with such power. This is where Financial Analysis emerges as your strong ally. It’s a data-driven approach that gives you clarity and confidence in your decisions.

A company has more chances to fix operational errors. This is possible when you perform financial analysis frequently. Keep reading to discover the importance of this tool in decision-making and strategy.

What is Financial Analysis?

At its core, financial analysis is about studying the following.

  • Market trend

  • Financial statement

  • Internal resources

  • Other financial data

This analysis gives insights into your company’s prospects. It also studies your current performance. Also, highlights errors and achievements. In simple words, financial analysis involves crunching numbers, identifying patterns, and assessing risks. You would be studying the following documents in detail.

  • Financial statement

  • Income statement

  • Balance sheet

  • Cash flow statement

  • Annual report

  • Quarterly report

  • Disclosures and footnotes

  • Auditor’s report

This process is performed using the following common techniques.

  • Horizontal analysis

  • Vertical analysis

  • Ratio analysis

  • Trend analysis

  • Cost volume profit analysis

You’ll learn more about this by taking up a Financial Analytics course. But before that, check out why you cannot afford to ignore this concept.

Financial Analyst course

How does a Financial Statement help in business decision-making?

A financial statement gives a snapshot of your company’s fiscal health at a given time. It consists of the cash flow and income statement, and balance sheet. Decision-makers can use it as a compass for making their strategies. Here’s how a financial statement helps businesses in decision-making.

  • Analysing profitability

  • Tracking cash flow

  • Attracting investors

  • Comparing performance

Why is Financial Analysis important for decision-making and strategy?

Now that you know about financial statements, let us look at the bigger picture. Listed below are the reasons highlighting the importance of financial analysis.

  • Merger and Acquisition opportunities: Financial analysis evaluates potential Merger and Acquisition opportunities. It identifies synergies, the target company’s financial viability, and the impact of the merger on your company.

  • Developing a long-term vision for the company: Financial analysis supplies you with data. This data is in the form of past performance and future projections. With this information, you can make long-term plans for the company.

  • Improving the management of cash flow: Through financial analysis, you can understand cash flow patterns in detail. It helps you gain more returns on investment opportunities. It does this by identifying periods of surplus and deficit.

  • Modelling scenarios and their possible impact: Uncertainties like changing consumer preferences are rife in the business world. Decision-makers can use financial analysis to model what-if scenarios. With this information, they can smoothly adapt to unpredictable circumstances.

  • Improving investor relations: Any publically traded company survives on positive investor relations. You can develop such relations through transparent financial reporting and analysis.

  • Risk management: Economic downturns and unpredictable changes in circumstances are plenty in the journey of any business. Financial analysis provides risk management tools. They evaluate potential impacts. It also helps in the process of developing risk mitigation plans.

Learn more with a Financial Analytics course

Financial Analysis is the collective study of risk management and financial statement. It provides insights that save your company from market unpredictability. Through a Financial Analyst course, you will learn more about this topic with hands-on training.

Imarticus Learning prepares you for a competitive work environment. Through live lectures by industry experts, it gives you an edge over your competitors. Explore the website to learn more about the offerings.

Career in Equity Research or Investment Banking: Which Role is Better?

Posted on by Imarticus Learning
Reading Time: 4 minutes

Choosing a career path in the realm of finance can be both exciting and challenging. Two of the most prominent positions that capture the attention of aspiring financial professionals are none other than equity research and investment banking. 

Although both these positions play critical roles in the finance industry, when it comes to responsibilities, skill sets, and career trajectories, there are quite a few differences between them. 

If you, too, are someone who still has not been able to decide which career path to pursue between these two, then don’t worry; we have got you covered. 

In this below-mentioned article, we will take you through a detailed guide exploring the details of both equity research and investment banking so that you can make a well-informed decision. 

What Is Equity Research?

Equity research can be described as a form of financial analysis that involves studying market trends and interpreting stock prices to help portfolio managers make well-informed investment decisions. 

As an equity research analyst, you will be required to bridge the gap between financial markets and investors by providing valuable insights to guide investment decisions. In addition to this, equity research analysts are also entrusted with the responsibility of identifying any underlying patterns within current market changes and using the gathered information to create algorithms that highlight profitable stock investment opportunities. 

In order to be successful in this field, financial professionals must possess a blend of data interpretation and problem-solving skills, alongside a detailed knowledge of various other financial tools. 

Career Prospects in Equity Research

As of 2023, the demand for equity research analysts is increasing at an unprecedented rate. In fact, did you know that according to a recent survey, the employment rate of market research analysts is estimated to witness a growth of 13% by the end of the year 2032?

On that note, mentioned below are some of the many career paths that you can explore in the domain of equity research.

Market Research Analyst

Market research analysts are entrusted with the responsibility of leading the buy-side and sell-side research for the company. In addition to this, they are also required to thoroughly analyse all the current as well as upcoming market trends and prepare reports on the same to help businesses make informed decisions. 

The average salary of a market research analyst is currently estimated at INR 4 lakh per annum. 

Sector Research Specialist

As a sector research specialist, you will be required to conduct thorough research on areas as specified by the fund manager and prepare reports on the same by consolidating information from various sources.

The current average salary of a sector research specialist is INR 4.6 lakhs per annum.

Senior Equity Research Analyst

Last but definitely not least, senior equity research analysts are required to mentor the junior analyst team, providing them with the necessary guidance and skill set required to perform their duties efficiently. 

On average, a senior equity research analyst is expected to earn compensation amounting to INR 10.9 lakhs per annum.

What Is Investment Banking?

On the other side of the spectrum is investment banking, a field that is primarily focused on capital creation, debt underwriting and equity for corporations of all types. 

Think of investment bankers as the architects behind the mergers, acquisitions, capital raising and other financial transactions. They play a crucial role in understanding the client’s financial needs and providing them with the required strategic financial advice. 

In order to pursue a successful career in the domain of investment banking, you must be organised and quick on your feet. This is primarily because this field mainly operates in a fast-paced and high-pressure environment. The deadlines are tight, and professionals need to be adept at managing multiple tasks simultaneously. In addition to this, you are also required to possess a strong knowledge of various complex financial models to evaluate potential deals. 

Career Prospects in Investment Banking

The global market for investment banking is estimated to witness a CAGR of 10.8%, amounting to as much as $213.6 billion by the end of the year 2032.

Mentioned below are some of the many career paths that you can explore in this vast realm of investment banking.

Banker

Bankers can be described as professionals who are adept at handling a firm’s private and business clients. From overseeing the management of investment portfolios to offering valuable advice to clients, everything falls under the realm of the responsibility of a banker. 

The current average salary of a banker in India is currently estimated at INR 6-8 lakhs per annum.

Branch Manager

Branch managers are required to manage the day-to-day operations of a bank or any other financial institution. This includes training and supervision of all employees, as well as ensuring optimal quality of service and assistance to customers.

Presently, the average salary of a branch manager in India is estimated to be INR 11,50,000 per annum.

Financial Planner

Financial planners can be described as individuals who are responsible for helping clients perfect all their financial plans and manage their money. From setting up an account in the bank to choosing investment portfolios and managing risks, everything falls under the role and responsibility of a financial planner. 

The average salary for financial planners currently in India is INR 5,71,149 per annum.

Equity Research Vs Investment Banking: Making The Choice

The ultimate decision of choosing between equity research and investment banking boils down to your individual needs, interests and skill sets. 

Equity Research Investment Banking
As an equity research analyst, you will primarily have a backend job. Investment bankers, on the other hand, get to enjoy the limelight. 
Equity research can offer a much better work-life balance when compared to most other professions.  Investment banking is notoriously known for its demanding work hours. 
Equity research can lead to roles such as portfolio management or investment analysis. Investment banking often serves as a launchpad for various high-level finance positions.
To excel in this field, individuals must possess great research abilities, a good analytical mindset and decisive thinking. Investment bankers are required to be extremely flexible, have statistical talents, and need specific financial capabilities.

 

Conclusion

Wrapping it all up, both these fields offer rewarding opportunities in the vast arena of the finance industry, each with its own specific challenges and advantages. The key is to assess your goals thoroughly and ensure that they are in perfect sync with the skills and demands of each role. Whether you find yourself in the analytical world of equity research or the dynamic field of investment banking, with the right skill set and knowledge, you are guaranteed to enjoy quite a blooming career in finance. 

With that being said, we present to you the Financial Analysis course offered by Imarticus Learning in collaboration with KPMG. In this four-month program, you will get to explore all the intricacies of the finance world via live virtual training. In addition to this, it also brings forth several advantages, including hands-on training by industry experts, extensive career support, industry certification, and more!

The Pros and Cons of Hedging Strategies

Posted on by Imarticus Learning
Reading Time: 3 minutes

Hedging strategies play a crucial role in the world of finance, providing risk mitigation and stability during uncertain times. In this blog, we will explore the pros and cons of hedging, shedding light on their importance in financial services. Whether you are a fresh graduate looking to build a career in finance or a young professional seeking to enhance your skills, understanding these strategies is essential for success.

What is Hedging?

Hedging refers to the practice of reducing or controlling financial risks by making offsetting investments. It involves taking positions that protect against potential losses arising from adverse market movements. These strategies are widely used by individuals and businesses to safeguard their investments and manage uncertainty effectively.

It is important for investors to carefully consider the pros and cons of hedging and assess their risk tolerance, investment goals and market conditions before implementing any hedging techniques.

Importance of Hedging Strategies

In today’s dynamic market environment, where risks can arise from multiple sources, hedging strategies offer several key benefits:

Risk Mitigation

One of the primary advantages of hedging is its ability to mitigate financial risks. By strategically diversifying investments across different asset classes or using derivatives such as options or futures contracts, investors can protect themselves against potential losses.

Stability in Uncertain Times

Hedging provides stability during volatile market conditions. By implementing appropriate strategies, investors can reduce the impact of sudden price fluctuations on their portfolios, ensuring smoother returns even in turbulent times.

Enhanced Planning

Hedging allows businesses to plan their finances with greater confidence. By hedging against currency fluctuations or commodity price volatility, companies can accurately forecast costs and revenues, enabling them to make informed decisions and allocate resources effectively.

Investor Confidence

Implementing hedging strategies demonstrates prudence and risk management capabilities to potential investors. This fosters trust and confidence in the business’s ability to navigate challenging market conditions successfully.

Competitive Advantage

Companies that effectively hedge their exposures gain a competitive edge over competitors who do not employ similar strategies. Hedging protects profit margins and ensures a stable financial position, allowing businesses to focus on core competencies and long-term growth.

Pros of Hedging Strategies

Let’s delve into some specific advantages of hedging strategies:

  • Hedging helps manage downside risk by offsetting potential losses in one investment with gains in another. This ensures a more balanced portfolio and protects against severe market downturns.

  • During economic crises or periods of volatile market conditions, hedging provides stability and reduces the negative impact of unpredictable events.

  • By effectively hedging against specific risks, businesses can plan for the future with greater certainty, optimising resource allocation and making informed decisions.

Cons of Hedging Strategies

While hedging strategies have their advantages, it is important to consider the potential drawbacks:

  • Implementing hedging strategies often involves additional costs such as fees for derivative products or professional advice. These expenses can eat into profits, especially for small investors or companies with limited resources.

  • Over-hedging occurs when an investor hedges excessively, leading to missed opportunities and diminished returns. Balancing the level of protection with potential gains is crucial to avoid over-hedging risks.

  • Hedging strategies require a deep understanding of complex financial instruments and market dynamics. Lack of expertise or incorrect implementation can result in ineffective hedges or even magnify risks instead of mitigating them.

  • While hedging protects against downside risk, it also limits the potential upside gain that investors could have otherwise realised during favourable market conditions.

  • Timing is critical when implementing hedging strategies. Making incorrect timing decisions can lead to losses if hedges are initiated too early or missed opportunities if initiated too late.

Mastering the Art of Hedging

Hedging strategies offer substantial benefits in terms of risk mitigation, stability, enhanced planning and competitive advantage. However, they also come with costs, complexity, limited upside potential and timing risks. Understanding these pros and cons is crucial for making informed investment decisions.

If you are interested in pursuing a career in finance or want to enhance your skills in financial services, consider enrolling in our comprehensive Financial Services Course at Imarticus Learning. This course covers various aspects of hedging and provides hands-on training to develop the necessary expertise. Visit our website today to learn more and take the first step towards a successful career in finance.

Top Financial Analysis Tools and Software You Should Learn

Posted on by Imarticus Learning
Reading Time: 3 minutes

Are you interested in pursuing a career in finance? Then you must stay up-to-date with the latest financial analysis tools and software.

In today’s fast-paced world, having the right tools at your disposal can make all the difference. These tools enable finance professionals to analyze large volumes of financial data accurately and quickly, which can be challenging to do manually. With the right tools, financial analysts can identify trends and patterns, and generate reports that offer real-time insights into financial performance.

Moreover, these tools also help in forecasting financial outcomes and performing scenario analysis, which is critical for decision-making. Overall, mastering these tools can provide a competitive edge in the finance industry and help professionals advance in their careers.

Here are some of the top financial analysis tools and software you should consider when you plan to learn financial analysis:

1. Excel

Microsoft Excel is the go-to tool for financial analysts. It’s a powerful spreadsheet program that allows you to create complex financial models, perform data analysis, and much more. It is used widely in the finance industry and you must learn it. You can use Excel to create charts and graphs, analyze financial data, and create pivot tables. It’s a versatile tool that can help you make informed financial decisions.

2. Tableau

Tableau is a data visualization tool that allows you to create interactive dashboards and reports. It’s an excellent tool for analyzing large datasets and presenting your findings clearly and concisely. With Tableau, you can create interactive dashboards that allow you to drill down into the data and find meaningful insights.

3. Python

Python is a programming language that’s becoming increasingly popular in the field of finance. It’s a versatile language that can be used for data analysis, machine learning, and more. Python is an excellent tool for analyzing large datasets, building predictive models, and automating tasks. It’s used widely in finance for tasks such as algorithmic trading, risk management, and portfolio optimization.

4. QuickBooks

QuickBooks is a popular accounting software that’s widely used by small businesses. It’s an excellent tool for managing finances, generating reports, and tracking expenses. With QuickBooks, you can easily manage your finances, track your expenses, and generate reports that help you make informed financial decisions.

5. Bloomberg Terminal

Bloomberg Terminal is a software platform that provides real-time financial data, news, and analytics. It’s a must-have tool for anyone working in finance. Bloomberg Terminal is used widely in the finance industry for tasks such as financial analysis, risk management, and trading. With Bloomberg Terminal, you can access real-time financial data and news, and analyze market trends and data.

6. R

R is a programming language that’s widely used for data analysis and statistical computing. It’s an excellent tool for analyzing large datasets and building predictive models. R is used widely in finance for tasks such as risk management, portfolio optimization, and financial analysis. With R, you can analyze financial data, build predictive models, and automate tasks.

7. Power BI

Power BI is a business analytics tool that allows you to analyze data and share insights. It’s an excellent tool for creating interactive dashboards and reports. With Power BI, you can easily create charts and graphs, analyze financial data, and share your findings with others.

8. Google Analytics

Google Analytics is a free tool that allows you to track website traffic and user behavior. It’s an essential tool for anyone working in digital marketing or e-commerce. With Google Analytics, you can track your website traffic, measure the effectiveness of your marketing campaigns, and optimize your website for better performance.

9. Stata

Stata is a statistical software package that’s widely used in academic research. It’s an excellent tool for data analysis and building predictive models. Stata is used widely in finance for tasks such as financial analysis, risk management, and portfolio optimization. With Power BI.

10. Xero

Xero is another cloud-based accounting software that is widely used by small businesses and accounting professionals. Xero offers various features such as invoicing, expense tracking, and financial reporting that make it an essential tool for financial analysis. Xero integrates with various other financial analysis tools such as Excel and provides real-time insights into financial performance.

Conclusion

Learning financial analysis tools and software can be a game-changer for your financial career. With the right tools, you can analyze financial data in real time and make informed decisions that can help you achieve your financial goals.

Imarticus Learning is a leading professional education institute that offers various finance and analytics programs to help professionals like you upskill and advance in their careers. Check out our Financial Analysis Prodegree program and build a strong career in the financial sector today.

Significance of Financial Modelling in Forecasting and Scenario Analysis

Posted on by Imarticus Learning
Reading Time: 3 minutes

Financial modelling is critical for understanding a company’s financial performance. This guide will explain the basics of financial modelling and how to build a model from scratch. You’ll also learn how to use financial models to make better business decisions.

Let’s get started!

Understanding Financial Modelling

Are you struggling to understand financial modelling? Don’t worry, you’re not alone. Many people find financial modelling confusing and complicated. However, it doesn’t have to be this way. We got you covered!

Financial modelling involves creating mathematical representations of real world financial situations. It uses historical data, assumptions, and various financial tools to simulate different scenarios. It helps predict the impact of potential changes on a company’s financial performance. Financial analysts can construct various models. They can do so by the use of spreadsheets and specialised software, These models can help forecast revenues, expenses, cash flows, and profitability.

Role of Financial Modelling in Forecasting

Forecasting is a critical aspect of financial planning and decision making. Accurate financial forecasts help organizations anticipate future trends. It helps assess the feasibility of their business strategies. Financial modelling enables companies to forecast their financial performance by considering various factors. These factors include market conditions, customer behavior, economic indicators, and industry trends. Organisations can project future revenues, costs, and profits. This can be done by integrating these variables into their models, It helps to aid in budgeting, resource allocation, and goal setting.

Scenario Analysis: Navigating Uncertainty

Organizations face numerous uncertainties and risks. That too in today’s rapidly changing business environment. Scenario analysis is a powerful tool that allows businesses to evaluate different future scenarios. It helps evaluate their potential impact on financial outcomes. By creating multiple scenarios based on varying assumptions, financial modellers can assess the range of possible outcomes. This enables organizations to develop contingency plans and test the resilience of their strategies. This can help make informed decisions under different circumstances.

Benefits of Financial Modelling

  1. Accurate Predictions: By applying statistical techniques, financial models can provide accurate predictions. It allows companies to make informed decisions and reduce uncertainty.

  2. Risk Assessment: Financial models enable organizations to assess the potential risks. It helps them identify vulnerabilities and develop risk mitigation strategies.

  3. Cost Optimization: Through financial modelling, organizations can identify cost drivers and analyze the impact of cost-saving initiatives. It helps optimize their resource allocation to achieve better financial outcomes.

  4. Strategic Planning: Financial models support strategic planning by facilitating scenario analysis. It helps in evaluating the impact of strategic initiatives. It also helps in identifying the most favorable paths to achieve organizational goals.

Financial Analysis Prodegree Program by KPMG

The KPMG Financial Analysis Prodegree is a four-month course that covers financial modelling and valuation. This financial analysis course is designed to give you a comprehensive understanding of financial analysis and valuation techniques. You will learn how to build financial models from scratch, how to interpret financial statements, and how to value companies using different methodologies. This course is perfect for anyone who wants to pursue a career in finance or become a financial analyst.

Following are the key Benefits of the Financial Analysis Prodegree program:

  1. The program provides participants with practical skills that are highly sought after in the industry. It helps in ensuring they are well prepared for the demands of financial analysis roles.

  2. The program’s blended learning approach allows participants to study at their own pace. It benefits from interactive online modules, virtual classrooms, and practical learning workshops.

  3. Participants have the opportunity to learn from industry experts through masterclasses conducted by KPMG India. It helps gain insights into real-world financial practices.

  4. The program offers dedicated career services, including resume building, and interview preparation. It also covers mock interviews, and job placement assistance. This helps in supporting participants in their career advancement and job search.

  5. Upon successful completion of the program, participants receive a certification from KPMG. This certification enhances their credibility and increases their marketability to potential employers.

  6. Graduates of the Financial Analysis Prodegree program have secured positions in esteemed organizations. Some of the top companies include TCS, Accenture, Morgan Stanley, TresVista, Wipro, and JP Morgan. The program’s alumni network provides a valuable platform for networking and professional growth.

Final Thoughts

Financial modelling plays a vital role in forecasting and scenario analysis. It enables organizations to make informed decisions, manage risks, and optimize their financial performance. The Financial Analysis Prodegree program by KPMG offers a comprehensive and practical learning experience. It equips participants with job-relevant skills, industry insights, and a recognized certification. Whether aspiring to excel in financial analysis or seeking career advancement, this financial modelling and valuation course provides the necessary tools to thrive in the dynamic world of financial modelling.

So, take the leap, enroll in the Financial Analysis Prodegree program, and embark on a rewarding journey.

 

 

Future of financial analysis in corporate finance: Emerging trends and challenges

Posted on by Imarticus Learning
Reading Time: 3 minutes

Welcome to the world of corporate finance and the future of financial analysis! But what is corporate finance? Corporate finance is all about making smart financial decisions to ensure the success of your organisation. Financial analysis plays a crucial role in this process, helping you make informed choices.

As we look ahead, the future of financial analysis holds great promise. However, it also comes with emerging trends and challenges. In this discussion, we’ll explore what lies ahead and the essential skills you need to excel in this ever-evolving field.

So, let’s dive in and uncover the exciting future of financial analysis in corporate finance. We’ll equip you with the knowledge and skills to navigate this dynamic landscape successfully. Get ready for an insightful journey into the world of finance!

Emerging trends in financial analysis

1. Advanced technological integration

Advanced technologies are shaping the future of financial analysis. Artificial Intelligence (AI), machine learning and data analytics play a big role. They help process lots of data quickly. Patterns are spotted and insights are generated. Repetitive tasks get automated. This means more time for interpreting results and doing valuable work. Financial analysis is changing fast with these powerful tools.

2. Real-time data analysis

In the future, financial analysis will increasingly rely on real-time data. This will help you understand your company’s financial health. You can access and analyse real-time data with cloud computing and interconnected systems. This helps in faster and more accurate decision-making.

3. Environmental, social and governance (ESG) factors

Businesses today are putting more emphasis on sustainability. Financial analysis is adapting accordingly. It now takes into account factors like ESG. When evaluating your company’s financial performance, stakeholders consider these aspects.

Financial analysts play a crucial role in analysing risks and identifying opportunities by incorporating ESG factors. They guide organisations towards sustainable growth. To conduct effective financial analysis, a deep understanding of these factors is essential. It’s all about aligning business practices with sustainability goals and making informed decisions that benefit both the company and the world we live in.

4. Blockchain technology

The integration of blockchain technology is expected to have a crucial impact on financial analysis. Blockchain offers benefits such as transparency, and enhanced security in financial transactions. This technology can streamline processes like auditing and financial reporting. It helps in reducing the risk of errors and fraud.

Challenges in the future of financial analysis

1. Data privacy and security

As we move forward, protecting the privacy and security of financial data will be a big task. With more cyber threats out there, regulations are getting stricter. Complex protocols will ensure that your company’s financial information remains safe and confidential. It’s important to develop robust data governance frameworks to effectively tackle these risks.

2. Interpretation of complex data

As a financial analyst, you’ll dive into a sea of complex data. Two big challenges await: accurately interpreting that data and extracting valuable insights from it. But fear not! Your analytical skills and critical thinking abilities will guide you through. Just remember to continuously upskill and stay updated with emerging analytical techniques to stay ahead of the game.

3. Regulatory compliance

As a financial analyst, it’s important to keep up with the ever-changing landscape of regulatory compliance. New technologies bring forth constant updates to these requirements. Your challenge lies in staying updated, ensuring your financial analysis practices align with the latest standards. Embracing this challenge will enable you to deliver accurate and compliant analyses that meet industry expectations.

Financial analysis prodegree by Imarticus Learning

The Financial Analysis Prodegree by KPMG is a 4-month online course that teaches you important skills for financial analysis. You’ll learn how to analyse financial statements, value assets and assess risks. After finishing the programme, you’ll get a recognised certification.

Imarticus Learning provides lots of help with your career, like building resumes and preparing for interviews. You’ll also get to connect with industry professionals who can help you find great job opportunities. The programme is taught by experienced professionals who know what they’re doing. Get ready for a successful career in financial analysis with this comprehensive programme!

Embracing the future

As you look ahead to the future of financial analysis in corporate finance, exciting possibilities and challenges await. Advanced technology and real-time data analysis are transforming the field. However, it’s important to address concerns like data privacy and security effectively.

To thrive in this evolving landscape, it’s crucial for you to continuously upskill yourself. Sharpen your analytical skills and stay updated with emerging techniques. The ability to extract valuable insights will empower you to make well-informed decisions that drive success.

Embrace the opportunities that lie ahead and equip yourself with the knowledge and skills needed to navigate the future of financial analysis in corporate finance. Stay curious, adaptable and ready to take on whatever comes your way!

Top Financial Modelling Courses in 2023

Posted on by Imarticus Learning
Reading Time: 3 minutes

Businesses and financial institutions are looking more than ever to harness financial data to forecast future performance and make relevant financial decisions. It has led to a growing demand for financial modelling skills. A career in financial analysis could help you exploit this market need. Financial modelling skills enhance your resume and provide better job opportunities. 

Financial modelling will come in handy for you if you are looking to boost your career or set up a business. A financial modelling course is a perfect way to learn the relevant skills and make a career in investment banking, mutual funds, project finance companies and any business in general.

This article will list the top financial modelling courses to look out for in 2023. 

What to look for in a financial modelling course? 

Before you opt for a financial modelling course, there are several aspects you need to keep in mind. 

Does it have any brand value for CV building? 

The value of a course is significantly heightened if it has CV-boosting potential. You need to understand whether the certification provides a distinctive edge in the competitive job market. 

Will this certificate help me in real-world learning? 

Another important aspect is whether the course is relatable to the real world. Before you take up the course, it is crucial that you examine the course structure and know beforehand if it trains you in practical experiences and offers a case study-centric model. Such a course can even improve your chances of faring well in job interviews and increase your odds of securing the job.

Does the certification adhere to its specific niche? 

Not every course caters to every candidate’s needs. One has to choose a course carefully according to his/her career aims. Some financial modelling courses are more suitable for candidates seeking a corporate finance career, while others are better suited for investment bankers. 

A financial modelling course is the stepping stone to rising in rank in the future. It allows finance professionals to be well-prepared and get lucrative job opportunities during the hiring process. Thus, asking the above questions before selecting a course is extremely important for advancing your career. 

Top 5 accounting and financial modelling courses 

Accounting and financial modelling courses will enhance your qualifications and help you get better job opportunities in prominent business companies. Here are the top 5 financial modelling courses that would set you on the path to success. 

Business and Financial Modelling Specialisation by Wharton:

This course by Wharton School, under the affiliation of the University of Pennsylvania, helps you hone your spreadsheet and modelling skills. It is a beginner-friendly course that helps learners to understand business models and the standard techniques used in investment analysis, forecasting and company valuation. 

Duration: 2 months 

Mode: Online 

Excel Skills for Business Specialisation by Macquarie University:

This is a series of four courses provided by Macquarie University to help aspirants with advanced Excel skills needed for business. This course helps segregate data and extract vital information from different data sets effectively. Besides, the course sharpens your automation skills and arms you in using advanced formulas to make robust business decisions. 

Duration: 3 months 

Mode: Online 

Finance and Quantitative Modelling for Analyst Specialisation by Wharton:

If you are interested in pursuing a career in data and business analysis, then this is the perfect course for you. The course trains aspirants to map and use data to predict future data scenarios affecting business performance. This series of four courses will help you gain the relevant knowledge required for finance and quantitative modelling to get job roles in corporate finance and investment analysis. 

Duration: 2 months 

Mode: Online 

Business Statistics and Analysis Specialisation by Rice University:

This comprises four courses, including a capstone project equipping learners with vital conceptual and applied skills. The course primarily helps aspirants master specific spreadsheet functions that, in turn, would enhance their aptitude for data modelling. It also explores the baseline probability concepts that materialise uncertainty through the data distribution process. 

Duration: 2 months 

Mode: Online

Financial Modelling Foundations by LinkedIn:

This course can ease the problematic decision-making process if you are in a management position in a business entity. It will teach you to build the corporate finance infrastructure alongside the basics of portfolio management and commercial and investment banking. The course covers buyout models, M&A models, DCF models, and more. 

Duration: 3.5 hours of on-demand video 

Mode: Online

Conclusion 

A career in financial analysis may initially seem challenging because of the vast area of study. One might also get confused between beginner- and advanced-level courses and end up choosing the wrong one. 

If you want to pursue a career in accounting and financial modelling, then check out Imarticus Learning’s Financial Analysis Prodegree in Collaboration with KPMG. This course helps you land job opportunities in investment banking, corporate finance and private equity. This 4-month online course is held on weekends and offers guaranteed placement assistance. 

Beyond Financial Metrics: Non-financial KPIs for Performance Measurement

Posted on by Imarticus Learning
Reading Time: 4 minutes

A company’s value in the market and economy in present times significantly depends on many non-financial business drivers. An enterprise generally counts these as its intangible assets even though these might have been formerly driven by physical assets.

If you are fascinated by a career in fintech and planning to opt for finance courses online, consider reading through the article to grasp the knowledge of non-financial KPIs.

An Understanding of Non-financial Performance Measures

Non-financial KPIs are not precisely associated with dollar signs as their expressions are not done in monetary values. The focus of non-financial KPIs is often on other elements of a business organisation.

Notwithstanding the fact that there is not a direct association between the non-financial KPIs and finances, they can be numeric. In such an instance, there is an occurrence of the types of measures as either quantitative or qualitative.

Significance of Non-financial Performance Measures 

The importance of non-financial can be discussed as two primary reasons: 

Firstly, they help in explicating and providing context for financial KPIs. Financial KPIs are typically lagging measures that make them feasible to collect and analyse. These lagging measures generate a report that has occurred already such as the fulfilment of orders, revenue generated, etc. These finances do not always provide the entire story. On the other hand, non-financial performance measures never fail to fill in the gaps. If there is an event of monetary fluctuation, the non-financial KPIs provide an answer to it. 

Secondly, it is more convenient to link certain elements of your overall strategy to non-financial KPIs. More precisely, most business organisations lack a finance-based mission. If the business organisation’s goal is to establish the best customer service, revenue numbers are not an efficient way of tracking that. In this case, customer satisfaction scores would bring accomplishments to the table. 

Reasons to Track Non-financial Performance Measures

Tracking non-financial KPIs is one of the crucial tasks for some business organisations. It helps to manage performance while keeping things in a simpler format. Below are a few reasons for companies to track non-financial performance measures:

  • Help to analyse strengths and weaknesses: A non-financial KPI in feedback surveys helps to upscale customer services. These measures disclose your root competencies and throw light on other areas that undergo suffering without your knowledge. 
  • Adjust external factors better: Non-financial performance measures remain under control to a great extent. Hence, they help to tweak external risks that a business organisation might need to experience. 
  • Plays an important role in business performance: A non-financial KPI traces back the performances of business organisations to the source. For instance, if the budget for HR recruiting exceeds, the non-financial KPIs will help you to see that it is for the high employee turnover rate. 
  • Give feedback to employees for meeting strategic objectives: A well-constructed non-financial KPI is liable to be specific and assist the business organisations in amplifying their strategies. The various feedback generated by these non-financial performance measures lets the team members determine their future goals. 

10 Examples of Non-financial Performance Measures 

Below are examples of 7 non-financial performance KPIs coordinated according to three non-financial perspectives along with their formulas: 

Internal processes

1) On-time rate

This will provide the percentage of time products that were delivered on time as scheduled. The formula for this is: (Number of On-Time Units in a Given Period) / (Total Number of Units Shipped in a Given Period) = (On-Time Rate) 

2) Product Defect Percentage

This will provide the percentage of products that are defective in a specified time period. The formula for this is:  (Number of Defective Units in a Given Period) / (Total Number of Units Produced in a Given Period) = (Product Defect Percentage)

3) Overdue Project Percentage

This will provide the number of delayed or behind schedule. The formula for this is: (Number of Overdue Projects in a Given Period) / (Total Number of Projects in a Given Period) = (Overdue Project Percentage) 

Customer

4) Conversion Rate

This will give the percentage of interactions that take place during a sale. The formula for this is: (Interactions with Completed Transactions) / (Total Sales Interactions) = (Conversion Rate) 

5) Retention Rate 

This will give the percentage of consumers who are retained as customers over an entire period of time. The formula for this is: (Customers Lost in a Given Period) / (Number of Customers at the Start of a Period) = (Customer Retention Rate)

6) Net Promoter Score

This will increase the chances for the customers to give brand recommendations to others. The formula for this is: (Number of Promoters) – (Number of Detractors) = (Net Promoter Score) 

Learning and Growth 

7. Employee Productivity Rate

This non-financial performance measure determines the efficient workforce of the employees over time. The formula for this is: (Total Company Revenue) / (Total Number of Employees) = (Employee Productivity Rate)

8) Salary Competitiveness Ratio (SCR)

This will give compensation options for the competitiveness in salaries. The formula for this is: (Average Company Salary) / (Average Salary Offered from Competitors or (Average Salary Offered by Industry) = (Salary Competitiveness Ratio) 

9) Turnover Rate For Highest Performers 

This non-financial KPI will show the rate of success for retention efforts from top performers. The formula for this is: (Number of High Performers Who Departed in Past Year) / (Total High Performers Identified) = (High Performer Turnover Rate) 

  10. Internal Promotion Rate

This will show the progress of top performers. The formula for this is: (Number of Promoted Individuals) / (Total Number of Employees) = (Internal Promotion Rate) 

Conclusion 

Non-financial performance measures are largely gaining prominence and are adopted by many business organisations across the globe. They are a fantastic business tool for modern-day organisations to build up their business strategies. 

If you are currently looking for finance courses online, consider exploring Financial Analysis ProDegree in Collaboration with KPMG. This financial analyst course is a great choice for establishing a career in corporate finance with accurate guidance via virtual training. 

Visit Imarticus Learning website and learn more about finance courses online. 

Mastering Financial Modelling: A Complete Guide To Forging A Successful Career Path As a Financial Analyst

Posted on by Imarticus Learning
Reading Time: 9 minutes

Introduction

Are you intrigued by the world of finance and its analytical aspects? Do you possess a knack for numbers and a passion for problem-solving? Building a career in financial modelling could be your ticket to a rewarding and lucrative profession. This blog will provide a step-by-step guide on how to pave your way towards becoming a successful financial analyst. From understanding the role to acquiring the necessary skills and exploring various career paths, we’ve got you covered.

What is Financial Modelling?

What is Financial Modelling

Financial modelling is a powerful analytical tool used to create mathematical representations of financial situations. It involves utilising various assumptions, data inputs, and mathematical techniques to make informed predictions and decisions. By constructing models that mimic the behaviour of financial assets or situations, professionals can gain valuable insights and evaluate potential outcomes.

The Role of Financial Modelling 

Financial modelling plays a crucial role in several industries, serving as a fundamental tool for analysis and decision-making. In the finance sector, it enables professionals to assess investment opportunities, value companies, and manage risk effectively. 

Analytics professionals rely on financial models to extract insights from complex data sets, enabling data-driven decision-making. In technology, financial modelling aids in financial planning, budgeting, and forecasting for projects and products. Even in marketing, financial models help allocate resources, assess marketing campaigns, and forecast revenue. Its versatile applications make financial modelling a highly sought-after skill in today’s data-driven business landscape.

Exploring the Top Ten Types of Financial Models: An Essential Guide

Financial models are indispensable tools used in various areas of finance to assess the performance, value, and feasibility of investments, transactions, and strategic decisions. As you embark on your journey to learn about financial modelling, it’s crucial to familiarise yourself with the ten most common types of financial models. Let’s delve into these models and understand their purpose and significance:

Three-Statement Model:

The Three-statement Model is a fundamental financial model that combines the income statement, balance sheet, and cash flow statement. It provides a comprehensive overview of a company’s financial performance, allowing analysts to assess its profitability, liquidity, and solvency. This model is widely used for financial analysis, forecasting, and valuation purposes.

Discounted Cash Flow (DCF) Model:

The Discounted Cash Flow (DCF) Model is a valuation model used to estimate the intrinsic value of an investment based on its future cash flows. By discounting projected cash flows to their present value, the DCF model enables investors to make informed decisions regarding the attractiveness and potential return of an investment opportunity.

Merger Model (M&A):

The Merger Model, also known as the M&A Model, is utilised to evaluate the financial implications of a merger or acquisition. This model helps in analysing the synergies, financial impact, and post-transaction performance of the combined entity. By incorporating the financials of the acquiring and target companies, analysts can assess the value creation potential and determine the viability of the transaction.

Initial Public Offering (IPO) Model:

The Initial Public Offering (IPO) Model is designed to evaluate the financial feasibility and potential returns of taking a private company public. This model assists in determining the offering price, estimating the proceeds from the IPO, and analysing the dilution effect on existing shareholders. It helps investment banks, companies, and investors make informed decisions during IPO.

Leveraged Buyout (LBO) Model:

The Leveraged Buyout (LBO) Model is used to analyse the financial viability and potential returns of acquiring a company primarily using debt financing. This model evaluates the cash flow generation capability of the target company and assesses the financial structure, return on investment, and exit strategies associated with the buyout transaction.

The Sum of the Parts Model:

The Sum of the Parts Model is employed to value a company with multiple business segments or subsidiaries. This model allows analysts to assess the individual value of each segment and aggregate them to determine the overall value of the company. It is commonly used in conglomerates or diversified businesses to understand the contribution of each division to the company’s overall worth.

Consolidation Model:

The Consolidation Model is utilised when a company has subsidiaries or investments in other entities. This model combines the financial statements of the parent company and its subsidiaries to present a consolidated view of the overall financial performance and position. It helps in analysing the financial health of the group as a whole.

Budget Model:

The Budget Model is a planning and forecasting tool used to set financial targets, allocate resources, and monitor performance against predetermined goals. This model helps companies create realistic budgets, track expenses, and make informed financial decisions throughout the budgeting period.

Forecasting Model:

The Forecasting Model is employed to project future financial performance based on historical data and assumptions. It assists in predicting revenue, expenses, and cash flow patterns, enabling companies to anticipate and plan for potential opportunities and challenges.

Option Pricing Model:

The Option Pricing Model is used to determine the fair value of financial options, such as stock options or derivatives. This model employs various mathematical techniques, such as the Black-Scholes model, to calculate the theoretical price of an option based on factors like underlying asset price.

Is Financial Modelling a Good Career?

Is Financial Modelling a Good Career?

If you’re interested in finance, analytics, and strategic decision-making you can build a successful career in financial modelling. There is a steady rise in the need for financial modelling experts who can precisely make financial predictions and navigate the increased complexity of corporate operations.  Businesses use financial models to analyse mergers and acquisitions, help in fundraising, assess investment opportunities, and enhance financial performance.

Building a career in financial modelling is a promising choice, especially in India’s growing financial landscape. By learning financial modelling and acquiring the necessary skills, you can position yourself for success in this dynamic and lucrative field. 

Becoming an expert in financial modelling can provide you with a wealth of knowledge and expand your career prospects. To begin with, you will get the opportunity to work in a dynamic and quick-paced environment, including marketing, analytics, technology, and finance, where data-driven decision-making is essential. You will also get the opportunity to work on new-age technologies along with intellectual challenges and a constant learning curve.

A job in financial modelling also offers intellectual challenges, ongoing education, and the possibility to use cutting-edge techniques and technology. Financial Analysts can benefit from attractive compensation, possibilities for career progress, and worldwide opportunities as long as the need for qualified financial modellers increases.

Understanding a Financial Modeller’s Role

Financial modellers create mathematical representations of financial situations in the finance sector. These models are frequently used in investment banking, corporate finance, private equity, and risk management since they help with making well-informed judgements, predictions and projections.

To excel in financial modelling, you need to develop a set of essential skills:

  1. Mathematical and Statistical Techniques: A strong understanding of mathematics and statistics, including algebra, calculus, and regression analysis, is essential for financial modelling.
  2. Software Proficiency: Proficiency in spreadsheet software like Excel is crucial for financial modelling. Familiarity with other software tools used in the industry is also beneficial.
  3. Financial Knowledge: You must be familiar with financial concepts such as discounted cash flow analysis, ratio analysis, and financial statement analysis to develop accurate models.
  4. Attention to Detail: Financial modelling requires meticulous attention to detail, as even minor errors can lead to significant inaccuracies in the final results.
  5. Communication and Presentation Skills: Effective communication and presentation skills are vital as financial models are often used to communicate results and recommendations to stakeholders.

Imarticus Learning, a leading finance education provider offers a financial modelling prodegree that helps you sharpen your skills and learn how to analyse financial statements. The course provides hands-on experience with financial analysis software and techniques, enabling you to apply your knowledge effectively.

Benefits of Taking Financial Analyst Online Training:

Enrolling in online financial analyst training offers several advantages:

Networking Opportunities: Online training platforms provide opportunities to connect with professionals in the field, expanding your professional network.

Flexibility: Online training allows you to learn anytime, anywhere, accommodating your busy schedule.

Career Advancement: Acquiring financial analyst skills through online training can enhance your career prospects and open up new opportunities.

Cost-effective: Online courses are often more affordable than traditional in-person courses, enabling you to invest in your education without financial strain.

Access to Resources: Online courses provide access to a wide range of resources, including videos, interactive tools, and online discussions, enriching your learning experience.

Continuous learning and professional growth are essential for a thriving career in financial modelling. To excel you must stay updated with industry trends, attend conferences, workshops, and webinars, and join professional associations to expand your knowledge base, network with industry experts, and access valuable resources.

Who Should Study Financial Modelling?

Who Should Study Financial Modelling?

Individuals with a keen interest in finance, accounting, and data analysis might consider a career in financial modelling. It is advantageous for finance professionals looking to improve their mathematical skills, such as accountants, financial analysts, and investment bankers. Studying financial modelling can also be helpful for people who want to work in positions that require financial decision-making, strategic planning, or investment analysis. For individuals contemplating a career in financial modelling, Excel proficiency, an awareness of financial statements, and a working knowledge of fundamental financial principles are advantages.

Navigating the Job Market

Understanding the current job market for financial analysts is crucial. Tailor your resume and cover letter to highlight your financial modelling skills and experience. Prepare for interviews by showcasing your expertise, problem-solving abilities, and understanding of financial concepts.

The current employment market for financial analysts is characterised by a persistently high demand for these professionals. As businesses depend more and more on data-driven decision-making, there is a rising demand for qualified individuals who can develop precise and analytical financial models. Many businesses, including finance, investment banking, consulting, technology, and healthcare, are in need of financial modellers and analysts.

Career Scope in Financial Analysis 

Financial modelling covers a wide range of sectors, including investment banking, real estate, private equity, corporate finance, consulting, and other financial services. Budgeting, strategic planning, risk assessment, valuation analysis, and performance evaluation all employ financial modelling. 

Your ability to function in a variety of roles and industries where quantitative analysis and financial decision-making are crucial will depend on your proficiency in financial modelling.

Potential Career Opportunities

Financial Analyst: Financial analysts analyse financial data, build models, and provide insights for strategic decision-making.

Investment Banking Analyst: Financial modellers can join investment banks as analysts, supporting the valuation and financial analysis of companies, mergers and acquisitions, and capital market transactions.

Risk Manager: With expertise in financial modelling, professionals can work as risk managers, assessing and managing risks associated with investments and financial assets.

Portfolio Manager: Portfolio managers are responsible for constructing and managing investment portfolios by using advanced modelling techniques.

Corporate Financial Planning and Analysis (FP&A) Analyst: FP&A analysts use financial models to analyse financial data, forecast performance, and support strategic planning and budgeting within companies.

Private Equity Professional: Private equity professionals analyse possible investments, organise transactions, carry out due diligence, and manage portfolio firms using financial models.

Consultant: Consultants offer customers advice services such as financial planning, business valuation, market research, and investment analysis using financial models.

Strategies for Interview Preparation and Showcasing Skills

  • Research the Company: Thoroughly research the company and its industry to understand its financial modelling needs and challenges. This knowledge will help you tailor your responses during the interview.
  • Practice Case Studies: Be prepared to tackle case study questions that assess your modelling skills and problem-solving abilities. Practice solving financial modelling scenarios to enhance your confidence and proficiency.
  • Showcase Experience: Use specific examples from your previous experience to demonstrate your ability to develop complex financial models, interpret data, and provide valuable insights.
  • Demonstrate Communication Skills: Clearly articulate your thoughts and ideas during the interview, showcasing your ability to explain complex financial concepts to non-technical stakeholders.
  • Highlight Collaboration and Teamwork: Emphasise your experience working collaboratively with cross-functional teams, as financial modelling often involves collaborating with professionals from various disciplines.
  • Ask Intelligent Questions: Prepare insightful questions about the company’s financial modelling practices, team dynamics, and future projects. This demonstrates your genuine interest and proactive attitude.

Creating a Compelling Resume and Cover Letter

When applying for financial modelling roles, it’s crucial to tailor your resume and cover letter to highlight your relevant skills and experience. Here are some tips:

  • Emphasise Quantitative Skills: Showcase your proficiency in mathematical and statistical techniques, as well as your experience with financial analysis and modelling software.
  • Highlight Accomplishments: Include specific examples of how you have utilised financial modelling to drive decision-making, improve processes, or achieve significant outcomes.
  • Showcase Technical Expertise: Mention your proficiency in spreadsheet software, programming languages, and any certifications or courses related to financial modelling.
  • Quantify Results: Use quantifiable metrics to demonstrate the impact of your financial modelling work, such as improved accuracy, cost savings, or revenue growth.
  • Tailor for Each Job: Customise your resume and cover letter for each application to align with the specific requirements and keywords mentioned in the job description.

By following these strategies, you can effectively prepare for interviews and showcase your skills and experience as a Financial Analyst. Remember to demonstrate your technical proficiency, problem-solving abilities, and strong communication skills to impress prospective employers.

In Summary

Financial modelling is emerging as a crucial skill set in today’s data-driven economy and can offer a world of opportunities for aspiring professionals. To prepare for success in this dynamic field you must stay up-to-date with industry trends while adapting and evolving with the changing times. 

Not only have we explored the significance of financial modelling but also delved into the essential skills required to succeed such as mathematical and statistical proficiency, software expertise, financial knowledge, attention to detail, and effective communication.

You can build these skills by opting for online financial modelling and valuation courses and gaining hands-on experience. You can leverage your knowledge and expertise while staying abreast of the latest technological developments and becoming a sought-after professional in the field.

Remember, success in financial modelling is not only about numbers; it’s about the insights and informed decisions that empower businesses and drive growth.

Take the leap, invest in your education, and embark on a rewarding journey towards becoming a skilled financial analyst. Your dedication and commitment today will shape a prosperous and fulfilling future in the exciting world of finance.

So, whether you are a student considering a career in financial modelling or a professional looking to advance your existing career, seize the opportunity to learn and excel in this thriving domain. 

What is the Scope in Financial Modelling?

Posted on by Imarticus Learning
Reading Time: 3 minutes

In the past two decades, the scope and purview of jobs in the financial services industry have broadened. If you want to build a career in finance but don’t want to take the mainstream route, financial modelling is for you. It’s different from the usual account and audit jobs. It requires evaluating data and creating financial models to make the future forecast and predict the movement of the market in times to come. Before jumping into the details of the scope of financial modelling, let’s understand what is financial modelling.

Understanding Financial Modelling

In simplest terms, financial modelling can be described as the practice or process of summarizing a company’s expenses and income in the form of a spreadsheet that is used to compute the impact of future events and business decisions regarding company’s finances. A financial model is built to highlight the performance of a company that will help analysts to identify present challenges and provide solutions accordingly.

Financial modelling is used mainly to analyze the stock performance of various companies and to evaluate the probable impact of future events on the performance of stocks. It is used to represent the operation of the company statistically. The main purpose is to help improve financial decision making by evaluating a large amount of data. Data-backed decision making has been the norm in today’s business landscape.

In addition to this, financial modelling tools are also used to estimate the valuation of a company and compare it with the other players in a similar domain. It is used in strategic planning as well and other purposes like computing the cost of new projects, allocation of corporate resources, budget decision making, etc. Whenever a company plans to expand its business or undertake a new project, it evaluates the feasibility of these projects using financial models.

The Scope of Financial Modelling

The scope of financial modelling is increasing by the day as more and more companies are relying on good structure financial models to predict the financial future of companies. It is not necessary to have a degree to get a job in the field of financial modelling. You can get trained by opting for a financial modelling course that will give you a comprehensive understanding of the market and how financial models work. Opting for a financial modelling course is helpful as it allows you to stand out from the competition by providing your will relevant and precise information about the industry.

Financial modelling services are data-oriented, it helps businesses to effectively analyze and make sense of data leading to more effective decision making. Financial modelling professionals have a plethora of opportunities and are hired by research firms, banks & financial institutions, credit rating agencies, insurance firms, etc. Given the significant role that data plays in the contemporary business landscape, most companies have vacancies for financial modelling experts.

If you are already in the finance or related segment, learning financial modelling will add a whole lot to your skill sets and boost your career prospects. Employers prefer to higher people who have financial modelling skills over those who don’t possess the same given the growing demand for financial modelling professionals. Financial modelling skill is a must-have if you are planning to start a career in investment banking, equity research, corporate finance, real estate, commercial banking, venture capital, etc.

Conclusion

Financial modelling skill is a high demand in contemporary scenarios where businesses rely on data science to create financial models and predict future trends. It has a lot of scope in a variety of finance and related segment and is very different from the traditional accounting and audit jobs. It is among the most promising career options for those who have an interest in building financial models and data analysis.