On march 31st 2012, financial modelling workshop was conducted at SEMS Lab from 10AM-4PM which involved all SEMS lab assistants and 19 paticipants from Industrial Engineering students. The instructors for the workshop are Rakhmat Satriawan and Tyonardo Cahyadi who are also the Researcher Assistant of SEMS Lab.
We had three sections in this workshop: definition and introduction of modeling itself, basic excel, and financial modeling. Each person got one personal computer to practice what instructor taught.
Definition of modeling is really important to tell since we all have to know when we should use financial modeling in real life by giving application example. Financial modeling is a task of building representation (model) of financial decision making situation. Five things we should do before we start building model: learn the required basic skills; understand the business model; define the objective; define the scope of the model; and beware of the deadline.
Basic excel section was explained, knowing the fact that excel is a little bit forgotten by people, that’s why we learn again about basic excel that connects to the third section. In this part, we learn basics about data sort (choose, index, match, offset, transpose, hlookup, vlookup); complement formula (rand, lower, upper, proper, now); macro; simple application example.
The third section, financial modeling, was conducted in 4 hours, that all participants were asked to do such a study case in their computers. The objective of this case study is to buid a n-year financial projections for the company. In financial modeling, its divided into two: cash out and cash in.
Cash out consists of investments, operational (direct and indirect cost), and financing. Cash in consists of investment, operational, financing. For the 4 hours of this section, we calculate all the parts of cash in and cash out, so that it will be easily forecast the future financial projections.
