Performing & Interpreting Financial Calculations Using Microsoft Excel

Financial Calculation

Target Audience: Finance Personnel; Non-Finance Executives with a little
understanding of basic finance; Managers and above

About the Course:

Many finance and accounting professionals are well versed in the subject matter but often find it a hindrance when it comes to the application of financial theory and principles by putting it into practical application using Microsoft Excel.

This program caters for all finance and accounting (besides others) who want to have an edge by learning to apply the various financial functions Excel offers. Starting with the basics of finance terms such as DCF, Time value of money and eventually moving on to other key areas.

Basically, a financial function in Excel performs a common business calculation involving money. These include calculations of loan repayments, calculation of the interest and principal portion of a loan, and determining various aspects of depreciation. Decisions are then made based on the calculated value.

Training / Course Outline:

1. A BASIC REFRESHER ON TERMINOLOGY AND OTHER FEATURES

Edit and copy formulas
Using AutoFill, AutoFit and AutoComplete
Application of functions such as SUM, SUMPRODUCT, SUMIF, COUNT, COUNTBLANK, AVERAGEIF
Usage of absolute and relative cell referencing ($ signs within formulas)

2. UNDERSTANDING LOGICAL STATEMENTS

Using the IF function for comparison purposes based on a true or false condition – what happens then?
Application of AND, OR and NOT functions

3. DISCOUNTED CASH FLOW ANALYSIS

Understanding the process of cash flow
Appropriate course of action to be taken
Time value of money
Analysis using NPV, XNPV, IRR, MIRR and XIRR functions

4. LOAN REPAYMENT CALCULATIONS

Using the PMT, IPMT and PPMT Financial functions to calculate loan repayments, interest and principal portion of payments

5. FINANCIAL FUNCTIONS BASED ON CALCULATIONS OF INTEREST RATE

Understanding the use of RATE function

6. WORKING WITH OPPORTUNITY COSTS

Learning to use the PV and FV functions
Interpreting the results of the above calculated functions

7. WORKING WITH INVESTMENT CALCULATIONS

Using the NPER function to calculate the period required for an investment to grow from one amount to another

8. WORKING WITH DEPRECIATIONS

Usage of the SLN, SYD, and VDB functions for calculating various aspects of depreciation