4 Slides for FM Training

7/25/2019 4 Slides for FM Training

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Copyright 2009 Deloitte Development LLC. All rights reserved.1 Introduction to Financial odeling

Financial odeling !rinciples

Basic Steps for Producing a Financial Model

" #uild $tructure %or model

" !opulate Assumptions and Inputs

" Create some o% the structure

Step 2

" &nderstand 'is(s

" !er%orm 'is( Analysis

" !er%orm $imulations

Step 4

" #uild reporting section o% the model

" !er%orm Financial Analysis

" )valuate results

Step 3

" Cleanse given data

" &nderstand given data

" Identi%y important Assumptions and Inputs %or the model

Step 1


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Copyright 2009 Deloitte Development LLC. All rights reserved.2 Introduction to Financial odeling


Why use a PMT application to model Financial Logic

* A Financial odel is an transactional"+ased application that allo,s multiple users to edit

and vie, di%%erent %inancial aspects o% a +usiness. It is used to analy-e %inancial data andto support +usiness decision ma(ing. It provides a top"level pro%itloss statement/ thea+ility to drill"do,n to vie, any desired summary reports graphs or detailed transactions/a ,ay to update and correct individual transactions/ and a ,ay to dynamically create ne,reports o% interests.

* &sing ! applications to create %inancial modeling logic leverages a client"serverorientation and allo,s users to colla+orate during +usiness decision ma(ing. Customi-ingand selecting vie,s o% interest is +uilt into the system thus the users can interactivelydecide the desired +usiness logic and the vie, on the data.

* he system creates a top"level vie, o% the model depending on the user typically a !ro%itand Loss $tatement. he user can select the desired date range and products that they,ish to vie,. hey can also drill do,n to see ho, a particular value is computed. hesedrill"do,n reports also allo, %or many customi-ed summary reports graph reports anddetailed reports.

$preadsheet modeling lac(s integrity and transparency and o%ten produces%aulty models causing users to ,aste enormous amounts o% sta%% time inunproductive model auditing and de+ugging activities.


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Copyright 2009 Deloitte Development LLC. All rights reserved. Introduction to Financial odeling


!o" do you automate#create logic in a PMT application

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Copyright 2009 Deloitte Development LLC. All rights reserved.? Introduction to Financial odeling


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4 Slides for FM Training

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