Why financial analyst requires financial modeling skill sets:
It is the essential task of a financial analyst to evaluate the financial health of the prospective company. A financial analyst able to track the financial report to ensure smooth running of the business. This involves preparing budgets, analyzing trends, and creating MIS reports etc. To execute these tasks you must have the skill of preparing financial statements, financial forecasting as well as financial modeling.
Mastering Excel as a Tool: Since most of the time would be spent in implementing the model in Excel unless you are very comfortable with the tool, you would take too long navigating the tool rather than creating the model. Excel Shortcuts, knowing advanced functions, the referencing framework, etc. will play a big role in helping you quickly implement your thoughts in Excel.
Correct Formatting: Other people would read your model and come to some decisions. If your model is not legible (fonts, results, spreadsheet, navigability, etc.), the model is not going to be useful. You will get to learn all kind of formatting in Excel.
Analysis: As a finance professional your job is to analyze data and come to conclusions. Each step of analysis and its implementation (Ratios, Valuation, etc.) should be taught to Finance Professionals. Financial Modeling will make you pro at analytics.
Why Investment Bankers use Financial Models?
Investment bankers use Financial Statement Modeling, Discount Cash Flow Analysis, Accretion/Dilution modeling for mergers or acquisition, they do comparative analysis in order to decide which company to invest in. Investment bankers also analyze the risk level or define whether a company is going in loss.
How financial modeling helps to financial analyst?
A variety of financial jobs out there, financial analyst, financial manager, financial advisor and many more. Selecting finance as your profession, you can work in different positions within an organization. If you are looking for more growth in your career, financial modeling skill set will definitely help you.
Financial models are typically used to anatomize and analyze a company’s performance and make predictions about the company’s future. Due to having such knowledge in building a financial model, it will open up a wide variety of career choices for you in finance.
Not only the better career opportunities but also a huge salary hike you will get after completing the financial modeling training from a reputed institute. Average salary of 7 lakhs per annum you will get after getting the financial modeling certification.