Financial Modeling Institute (FMI)

The Advanced Financial Modeler (AFM) Candidate Handbook was designed to answer your questions about FMI's flagship accreditation program. Download the AFM Handbook to discover the importance of financial modeling accreditation, review the AFM curriculum, and learn when you can sit the AFM exam.

Chartered Financial Modeler (CFM) accreditation holders are great problem solvers across a variety of complex modeling situations. CFMs can quickly and efficiently create modeling solutions for the following finance issues. All of the 33 complex modeling situations below fall under the 12 topics to Know for a Chartered Financial Modeler. ● Divisional allocations ● Geography ● Currency ● Capacity constraints ● Operational changes ● Contingent revenue ● Economies of scale ● Multi-currency costing ● Semi-variable costs ● Different methodologies ● Purchases and disposals ● Fully depreciating assets ● Inventory continuity schedule ● Monthly or quarterly working capital ● Tax losses ● Tax loss continuity schedule ● Tax depreciation ● Multiple jurisdictions ● Effective tax rates ● Various debt features ● Covenants ● Debt sculpting ● Refinancing ● Issuances / buybacks ● Dilutive securities ● Tiered equity returns ● Non controlling / minority interest ● Equity method investments ● Long-term investments ● Sensitivity analysis & summary automation ● Timing flexibility ● Model checking ● Data management

Looking to distinguish yourself in your career? Get accredited as an Advanced Financial Modeler (AFM). Scholarships are available for the AFM accreditation program, providing up to a 50% discount on the standard exam fee. The deadline to apply this month is August 31, 2024 – only 2 days left! Don’t miss out on this opportunity to advance your career. Applications are accepted monthly, so you can apply at any time. Apply Now: https://lnkd.in/g2ZfGmgX #financialmodeling #financialmodeler #scholarship #application #careergrowth

In this issue of the FMI quarterly newsletter, attend upcoming events, explore content on scenario analysis, learn about a new partnership, and more.

We are pleased to welcome Paul Smith, CFM, Financial Modeling Specialist at FMI, to present an “Introduction to Cash Flow Modeling.” In this webinar, Paul will cover: 1. How to create a Cash Flow statement 2. Different types of Cash Flow statements 3. Key sensitivities for the Cash Flow statement There will be an opportunity for Q&A at the end of the session. Register Now.

Storytelling is a powerful tool within the finance industry. A three-statement financial model is just one part of the story. To create a comprehensive narrative, an executive summary, clear assumptions, and all scenarios must be laid out, giving the story a beginning, middle, and end. When conveying the story of a financial model, conciseness and ease of understanding are crucial. Executives typically seek a summary of the model first, followed by curiosity about the assumptions used in its creation. Subsequently, the story delves into the base, better, and best-case scenarios that were considered, concluding with all the schedules and statements that form the model. By captivating attention throughout the entire storytelling process, you can instill confidence in connecting the dots flawlessly within an error-free financial model, adhering to the best practices of an Advanced Financial Modeler. Ultimately, a well-crafted story outlining various scenarios, supported by accurate data and simple formulas, empowers decision-making. When coupled with great models and a compelling narrative, strategic decisions become clearer and more effective. To learn more, visit: https://lnkd.in/gbbtRxBE #financialmodeling #communication #storytelling

FMI is thrilled to recognize the achievement of the new Advanced Financial Modeler (AFM) accreditation holders from Mitsui & Co., Ltd.. Congratulations to the talented individuals at Mitsui & Co., Ltd. who have joined the world’s leading community of accredited financial modelers. Thank you for choosing Financial Modeling Institute.

When building a financial model, attention to detail is crucial, especially when it comes to model structure. To ensure consistency and accuracy throughout the model, certain structural tips should be followed. Adhering to these structural tips can significantly enhance the user experience and ultimately contribute to the success of the model. Structural Tips: Never enter the same variable twice within the model - a second instance should be linked back to the original input cell Never hardcode values within formulas (i.e. =A5 + B5 + 29.832) – the 29.832 is a hardcoded value and should have been entered into its own cell and referenced in the formula Do not insert blank columns in between years (for extra space, make the columns wider / to add calculated growth rates, these should go on a different row) Use circularity sparingly, and only if it’s absolutely necessary and you have an excellent grasp of how to build, manage and de-bug circular references Minimize or avoid the use of macros unless absolutely necessary – one common usage of macros in financial models is to create summary pages that populate the answers for multiple cases simultaneously Like this post on structural tips? Let us know in the comments if you’d like to receive a PDF on Financial Model Best Practices. #FinancialModel #Excel #Tips #FinancialModelingInstitute

FMI is pleased to announce its partnership with CFA Society Mexico. By enabling its members and community the opportunity to sit FMI's Advanced Financial Modeler (AFM) accreditation exam, CFA Society Mexico is furthering its mission to be the leading organization in the Mexican financial and investment community by promoting professional education and career development. With the addition of the Practical Skills Modules to its program, CFA Institute has recognized the importance of financial modeling knowledge. We welcome the charterholders and community of CFA Society Mexico to the FMI Community. #cfa #financialmodeling #cfainstitute #CFASocietyMexico

A strong financial modeler needs to demonstrate proficiency in Excel, Accounting, Design, and Finance. Many of the specific skills used by financial modelers are listed below. Skills of an Advanced Financial Modeler What decision makers see: • Model Design • Operating Schedules • Financial Schedules • Financial Statements • Scenario Analysis • Storytelling Skills • Capital Structure Modeling What decision makers don't see: • Risk Mitigation • Quick Model Editing • Informed Decision-Making • Easy to Edit and Review • Excel Keyboard Shortcuts #FinancialModelingInstitute #financialmodeling #financialmodel #excel #skills