Financial Modeling Fundamentals

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Financial Modeling Fundamentals

This course is part of Accounting and Financial Modelling Bootcamp Specialization

Instructors: Michael McDonald

Included with

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3 modules

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

7 hours to complete

Flexible schedule

Learn at your own pace

3 modules

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

7 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Apply Excel modeling best practices to structure financial models for accuracy and usability.
Forecast revenues, expenses, and working capital using assumption-driven logic.
Build an integrated three-statement model and perform scenario/sensitivity analysis.

Skills you'll gain

Tools you'll learn

Microsoft Excel

Details to know

Shareable certificate

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This course is part of the Accounting and Financial Modelling Bootcamp Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 3 modules in this course

This course introduces the principles and practice of building structured, assumption-driven financial models in Microsoft Excel. You will apply Excel modeling best practices to design clear input, calculation, and output sections; write robust formulas; and document assumptions for transparency and auditability.

Starting with model layout and dynamic functions such as INDEX/MATCH and IFERROR, you will develop driver-based forecasts for revenue, expenses, capital expenditures, and working capital. You will then integrate these projections into a fully linked three-statement financial model—connecting the income statement, balance sheet, and cash flow statement with automated logic and validation checks. The course also covers scenario analysis, sensitivity testing using data tables, and model error-checking to support sound financial decision-making. By the end, you will be able to build dynamic, assumption-driven Excel models suitable for business planning, valuation, and performance analysis.

This module covers foundational skills in building structured Excel models. Learners will be introduced to proper layout principles, naming conventions, formula design, and basic troubleshooting tools. The module also focuses on model usability and documentation — essential skills for professional modelers.

What's included

11 videos2 readings1 assignment1 peer review1 discussion prompt

11 videosTotal 45 minutes

Intro Video to Course 2 minutes
Module Introduction 1 minute
Inputs, Calculations, Outputs: The Golden Rule 6 minutes
Layout, Labeling, and Color-Coding Standards4 minutes
Navigating and Designing for User-Friendliness5 minutes
Absolute vs. Relative References4 minutes
Lookup Functions: INDEX/MATCH vs. VLOOKUP5 minutes
Error-Checking with IFERROR and Conditional Logic4 minutes
Creating an Assumptions Dashboard5 minutes
Tracking Model Changes and Version Control 4 minutes
Sourcing Data and Referencing External Inputs4 minutes

2 readingsTotal 10 minutes

Welcome to the Course: Course Overview5 minutes
Modeling in Excel and Its Importance 5 minutes

1 assignmentTotal 20 minutes

Excel Modeling Techniques and Best Practices 20 minutes

1 peer reviewTotal 25 minutes

Hands-On-Learning: Building a Clean, Structured Financial Model Template25 minutes

1 discussion promptTotal 10 minutes

The Golden Rule of Modeling 10 minutes

This module focuses on building forward-looking forecasts for a company’s operations. Learners will develop revenue and cost projections using driver-based assumptions. Lessons will include forecasting techniques for SG&A, cost of goods sold (COGS), depreciation, and working capital. The goal is to build a dynamic, assumption-driven operating model that feeds directly into financial statements and scenario analysis.

What's included

10 videos1 reading1 assignment1 peer review1 discussion prompt

10 videosTotal 52 minutes

Module Introduction 2 minutes
Top-Down vs. Bottom-Up Forecasting 4 minutes
Unit Economics and Pricing Strategies5 minutes
Market Size, Growth Rates, and Penetration Scenarios5 minutes
Fixed vs. Variable Costs5 minutes
Operating Leverage and Break-Even Analysis6 minutes
Driver-Based Cost Allocation6 minutes
Maintenance vs. Growth Capex6 minutes
Modeling Depreciation and Asset Schedules7 minutes
Forecasting Working Capital (DSO, DPO, Inventory Turns) 7 minutes

1 readingTotal 5 minutes

7 Financial Forecasting Methods to Predict Business Performance5 minutes

1 assignmentTotal 20 minutes

Operating Model Forecasting 20 minutes

1 peer reviewTotal 30 minutes

Hands-On-Learning: Forecasting Revenues, Costs, and Working Capital Drivers30 minutes

1 discussion promptTotal 10 minutes

Balancing Simplicity and Realism in Forecasts 10 minutes

This module teaches students how to link the income statement, balance sheet, and cash flow statement into an integrated three-statement model. Learners will create dynamic linking logic using forecasted assumptions and formulas, build checks and balances to validate model accuracy, and then explore scenario and sensitivity analysis. The goal is to create a fully functional model capable of supporting real-world decision-making.

What's included

11 videos1 reading1 assignment2 peer reviews1 discussion prompt

11 videosTotal 64 minutes

Module Introduction 1 minute
Connecting Income Statement and Balance Sheet4 minutes
Automating the Cash Flow Statement6 minutes
Handling Circular References and Iterative Calculations8 minutes
Calculating Operating and Free Cash Flow7 minutes
Building a Debt Schedule with Interest Expense5 minutes
Modeling Equity Raises and Dilution6 minutes
Setting Up Sensitivity Tables (Data Tables)8 minutes
Scenario Planning and Toggle Controls8 minutes
Validating and Stress-Testing Your Model7 minutes
Course Wrap-Up3 minutes

1 readingTotal 5 minutes

Scenario Analysis: Definition, Process, and Benefits5 minutes

1 assignmentTotal 20 minutes

Three-Statement Model Construction and Scenarios 20 minutes

2 peer reviewsTotal 95 minutes

Hands-On-Learning: Integrating the Income Statement, Balance Sheet, and Cash Flow35 minutes
Project: Designing and Building a Dynamic Three-Statement Financial Model 60 minutes

1 discussion promptTotal 10 minutes

The Value of Transparency in Complex Models 10 minutes

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Instructors

Michael McDonald

Starweaver

8 Courses3,117 learners

Offered by

Starweaver

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Frequently asked questions

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When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.