Benefits of Finance and Quantitative Modeling For Analysts
Would you like to know the benefits of Finance and Quantitative Modeling For Analysts? Well, it’s normal to have several doubts. While the internet provides us with a lot of information, sometimes it also creates confusion due to the overload of information. So, it’s best to avoid consulting and reading every piece of information available on the internet. If you are here, you can keep your worries aside and get the answers to your queries. It’s a promise, we are not going to confuse you! Delve into this article to find a plethora of information about the fascinating job of an analyst.
Meaning of Finance and Quantitative Modeling for Analysts
Finance and quantitative modeling play an important role in the field of finance. Most of the time the financial data that is received is incomprehensible to the common man. By common man, we mean the people belonging to the non-financial department of the company.
In the field of finance, a lot of data is received on a regular basis. This data is sometimes in the form of simple numerical figures but at other times are complex numerical structures. By structures, we mean something which needs a proper calculator to derive the meaning.
Quantitative modeling refers to the practice of receiving complex data, using mathematical formulas to derive the meaning, and finally presenting it in the form of visual figures. In quantitative modeling, graphs, pie charts, etc are used. This visual representation helps you to get a better understanding of all the transactions and monetary exchanges that have taken place in the firm. Most of the time, these graphs are used to evaluate and analyze the company’s current situation and make predictions about the future.
A proper calculation and a systematic visual representation of the statistical numbers in the form of graphs often show the trends in the business. These trends help you to analyze the situation and the historical trend of certain steps that have been taken in the past and thereby making appropriate forecasts. Why do you think that this analysis and forecasting procedure is given such importance?
The answer is the profit motive of a company. No company would deliberately make decisions that would incur their loss. Hence these kinds of analyses are essential for increasing the profit factor of the company and also to arrive at decisions that would protect it from being debt-ridden in the future.
You can also read: Financial Modeling Courses on Coursera
Who Is An Analyst?
In simple words, an analyst is someone who has the ability to analyze a particular situation. But here, we are talking about a financial analyst. As an analyst in the field of finance, the tasks involved here become very critical. An analyst plays a very critical role in any business or firm. The work of an analyst is to analyze and come up with ideas regarding a business.
For example, there may be a quantitative model in front of you as an analyst. This quantitative model will be a visual representation of various complex investments, debts in the market, stocks available, or past trends. As an analyst, you will have to decipher the figures and graphs in front of your eyes, make calculations by using various mathematical formulas, and thereby do thorough research. Once the research is completed, your analysis comes into action.
The analyst will analyze and evaluate the graphs and visual representations to give advice to the company. The analysis will be made on the trends of a company and the trends of other companies will be compared to it. Based on this comparison and evaluation future motives and actions will be decided.
Also read: What is Financial Analysis and Forecasting
Role of Finance and Quantitative Modeling for Analysts
As an analyst, a lot of critical and complex decision-making lies on you. All the field in the financial department is interconnected. Isolating each field will deny us a holistic view of the department. The role of a modeler and the role of an analyst can be rigidly classified because they both depend upon each other to come up with proper resolutions.
Finance and quantitative modeling for analysts play a huge role in bringing out a proper evaluation. If you present a complex numerical structure in front of other people, the chances of them understanding its meaning become negligible.
So quantitative modeling is used to convert and transform the complex and critical numerical data received. This data is converted into a comprehensible format by using calculus and various mathematical formulae. Once the data is converted into a simpler form, it is used to form visual representations like graphs, flowcharts, presentations, etc.
The visual representation is viewed and analyzed by the analyst. The analyst plays a very important role in deciding the future prospects of a company. Where should the company invest, how can it avoid making losses, changes in the market, how it can improve the profit rates, analyzing the data of your own company and analyze it with those of other competitive companies, etc.
All these are the various aspects of analysis that are made by the analysts. An analyst must have a proper understanding of concepts as well as the ability to read and evaluate different kinds of models. A person who has a very limited understanding of financial and quantitative models can never be an analyst.
Importance Of a Course In Finance and Quantitative Modeling For Analysts
A finance and quantitative modeling course can be highly beneficial for someone who wants to be an analyst. A financial modeling course is usually a short-term course where the latest techniques and tools along with the essential topics used in finance are taught. As students of this course, you will be given thorough training on the skills and efficiency that you would require to work in this field,
One of the main aspects of this course is the study of different types of financial models. Each of these models is used in different situations. During the course, you will also be taught and trained to construct your own model. Along with the different types of models, you will be taught about the uses and functions of each of these models, and the situations where each model is used. Being a practical-based course, this course will enable you to develop your skills and use them in different kinds of analysis.
As an analyst, this course will help you. Analysts have to understand and make sense of various kinds of models to make a certain analysis. With the wide range of knowledge that you will receive upon completing this course, your work as an analyst will be highly-efficient and advanced in nature. The skills and techniques you develop over the tenure of this course will enable you to make a more detailed and far-sighted analysis. This type of advanced analysis will help the company to shine and make larger profits.
You can also check Financial modeling training in Metropolitan cities:
Institutes Offering Finance and Quantitative Modeling For Analysts
1. IIM SKILLS
The institute was founded in the year 2015. In just a few years, IIM SKILLS has gained the reputation of one of the most trusted online education institutes in India. Even though the institute is based in India, its courses can be availed by anyone and everyone from any part of the world. The institute provides a large variety of different kinds of professional courses
Each of these courses was introduced time-to-time so that the young generation can get into their desired field without any hesitation. The courses are the new-age skill-based course where more importance is given to the practical application of your knowledge.
The trainers associated with the institute are aware of the rising demands and pressures that are put upon freshers. The increasing demands put a lot of pressure and are the cause of stress among the young job-seekers. To help you to receive the appropriate knowledge and skills required to shine in an interview at your place of work, the trainers are available to help you anytime
Course: Financial Modeling
Duration: 3 to 4 months
|Module 1 – Basic and Advanced Excel (8-10 hours)|
Module 2 – Accounting Concepts and Financial Statements (5-7 hours)
|Module 3 – Ratio/KPI Analysis (4-6 hours)|
Module 4 – Basics of Financial Modeling (4 hours)
|Module 5 – Different Types of Financial Models (12-15 hours)||• LBO Model|
• M&A Model
• Private Equity Return Model
• 13 Week Cash Flow Model
|Module 6 – Business Valuation (7-9 hours)||• Relative Valuation – Trading and Transaction Comps|
• DCF Valuation
• NAV Approach for Valuation
Basic and Advanced Excel:
- Introduction and understanding of the Ribbon
- Keyboard shortcuts
- Regular use functions- Vlookup, Index, etc
- Rules of Conditional Formatting
- Data Validation
- Table functions
- Pivot tables, Pivot Charts, and Slicers
- Different types of charts and graphs
- Sensitivity analysis
- Delimit and Flash Fill
- Return functions
- What-If analysis
Accounting Concepts and Financial Statements:
- Key Accounting Fundamental concepts
- Concepts of keyline items
- Concept of comprehensive Income
- Relevance of Notes
- Preparing common size financial statements
- Reading of Annual Report
- Types of Ratios
- Activity Ratios
- Liquidity Ratios
- Solvency Ratios
- Profitability Ratios
- DuPont formula
- Valuation Ratios
- Basic and diluted EPS
- Financial Summary
Basics of Financial Modeling:
- Structure for a financial model
- Creating Scenarios
- Building Revenue
- Preparing different schedules
- Projecting financial statements
- Error tracking skills
- Formatting tips
- Addition of cover page
Types of Financial Models:
- LBO Model
- Three-Statement Projection Model
- M&A Model
- Private Equity Return Model
- 13 Week Cash Flow Model
- Relative Valuation
- DCF Valuation
- NAV Approach
- Football field analysis
- Valuation Output
- Valuation Report
- Pre-money and Post-money valuation
Fees: INR 49,990
Mode: Live Virtual Class
Benefits of the course:
- Lifetime LMS support is given to you. Study materials, new topics, presentations, details, etc are all included here. You can access the LMS anytime. Any new topics introduced and are being used widely in the market, are notified to you. The institute believes in the idea of a lifetime learner. So, whenever you feel you can log in and revisit the past lectures or the recent lectures along with the topics introduced recently.
- Being a professional course, the main idea behind doing this course would be to get a job. The institute helps you with that. Internship opportunities are provided to you so that you get decent exposure and experience in the field you are about to enter. Placement opportunities are also provided where each student will get a guaranteed interview opportunity.
- The syllabus of the course is reshuffled and renewed frequently. Based on the current market changes, new and innovative skills and techniques are introduced. Outdated topics are immediately replaced by new and recent developments in the market. Thus you will always be up-to-date with the most recent developments.
- Extremely helpful trainers and professionals will be there to teach and help you. Your doubts regarding the course or any particular topic can be addressed to the trainers via email. Immediate response and attention to your queries are given.
- In the dynamic world, we are living in, practical exposure to the workspace and the crises that arise in such a place needs to be looked into carefully. To enable you to get a real understanding of the situations and the problems, real-life case studies are used. You will be required to evaluate and analyze these case studies and come up with your own interpretation.
Professional Courses from IIM SKILLS
- Digital Marketing Course
- SEO Course
- Technical Writing Course
- GST Course
- Content Writing Course
- Business Accounting And Taxation Course
- CAT Coaching
- Investment Banking Course
Email: [email protected]
Phone: +91 9911839503
Other Courses Offered By IIM SKILLS
2. Corporate Finance Institute
This is a well-known institute known for providing various kinds of financial modeling courses. The courses range from basics to advanced levels. Based on your proficiency and the level you want to complete, you can choose the course.
The institute does not provide just a single financial modeling course that covers all the topics. There are different aspects and skills in a course and for each of these skills, a varied financial modeling course is provided. In totality, they have 30 courses of which a few are core courses while the others are elective courses which you can choose according to your requirement.
Course: Financial Modeling and Valuation Analyst
Duration: 180+ hours
- Accounting Fundamentals
- Reading and analyzing Bank Statements
- Corporate Finance Fundamentals
- Macabacus Fundamentals
- Financial Analysis
- Accounting Principles and Standards
- Three Statement Financial Model
- Business Valuation
- Budgeting and Forecasting
- Monthly Cash Flow Forecast Model
- Scenario and Sensitivity Analysis
- Professional Ethics
- Operational Modeling
- Mergers and Acquisitions Modeling
- Leveraged Buyout LBO Model
- Presentation of Financial Statements
- Real Estate Financial Modeling
- Advanced Excel Formulas and Functions
- Final Exam
Mode: Live Virtual Classes
Benefits of this Course:
- This course will open up a wide range of options and career opportunities for you. Once you complete this course, you can get into the field of corporate development, investment banking, equity research, financial analysis, private equity, etc.
- You will be exposed to 30+ courses with over 1620 lessons that would expand your horizon and give you a better analytical mind.
- A blockchain certificate is also available. To gain this certificate, you need to give a special test. Once you pass the test you will be provided with a prestigious certificate. A blockchain certificate is usually a certificate that verifies your skills and knowledge.
- The practical sessions and the experience gained from those sessions will help you shine in your interview. The knowledge which people usually gain only through professional experience will be provided to you during the course itself. So, in spite of being new to the industry, your knowledge would be vast.
Email: [email protected]
3. EY Institute
The institute is regarded as one of the leading institutes providing this kind of extensive and well-researched course. The syllabus of the course is designed in a structured way that would help you to understand the concepts gradually. The competitive world today demands even the freshers be acquainted with at least the basic skills. To enable the students to appear for an interview with confidence this type of skill-oriented course was introduced.
Course Provided: Certificate in Financial Modeling and Valuation
Duration: 36+ hours
- Structuring and designing models
- Revenue and Expense
- Financial Statement Analysis
- Tax Calculation
- Integrating Financial Statements
- Building Macros
- Approaches to Valuation
- Output Presentation
Fees: INR 10,000
Mode: Online Certificate Course
Benefits of this course:
- A huge range of topics is covered simultaneously so that you do not miss out on any topic.
- The certificate provided by the institute is recognized worldwide with all good companies accepting the value of such a course.
- The basics of business valuation along with other kinds of valuation and the methods to evaluate and analyze those valuations will be taught to you.
Email: [email protected]
Phone: + 91 9811638456
Frequently Asked Questions
Q1. Are a course in finance and quantitative modeling for analysts beneficial?
Yes. A course on finance and quantitative analysis is a highly beneficial course for all those aspiring to be an analyst. The work of an analyst would involve analyzing various situations and scenarios along with the study of different kinds of models. These models are situation-specific and different kinds of models are used in accordance with different situations.
A course of this type will make you understand and get familiar with the process of modeling and data analysis. Only when you know a model and the ways in which they are created, will you be able to analyze them. You cannot make an analysis of something you are not familiar with. For a detailed analysis, a strong knowledge of the concept needs to be presented to you. Thus a course in financial and quantitative modeling is highly beneficial for an aspiring analyst.
Q2. Can I be an Analyst after completing my graduation?
Yes. You can be an analyst after your graduation. But the stream has to be relevant and similar to something that you need to be an analyst. For example, you can be a graduate in commerce or finance, economics, and any other relevant field.
But you cannot be a financial analyst after doing a bachelor of arts in Sociology or English. Since most good companies prefer their employees to possess some industry-specific course, it is highly recommended to do a professional course on modeling so that you are well-acquainted with the industrial needs.
Most of the time, our conventional degree courses do not provide us with the practical exposure needed to pass an interview. We may possess the knowledge required and be excellent in conceptual understanding, but without any practical skill-based knowledge, the company is not going to hire you.
Q3. How are the fields of modeling and analysis connected to each other?
Modeling is the systematic collection and recording of data, while analysis is analyzing those data. In the field of finance, there are several departments that are involved and work together continuously for the proper functioning of the company. The financial and quantitative modeler receives and records data like profits, losses, expenditure, tax, revenue, investments, debt, etc. Often these data are not received in a very simple format.
At such times, a modeler has to use his or her knowledge and calculations to derive a simpler form of the data and thereby represent it in the form of graphs, pie charts, powerpoints, or any format which is comprehensible to common people. As an analyst, you will work along with the modeler. You will use your own skills and assumptions to study the graphs. Through them, you can analyze the trends in the market, the ongoing or forthcoming risks, investments, etc. Your analysis will help the company to take part in good opportunities and also protect them from risk-bound situations.
Too much information in one go can be overwhelming at times. Take your time to understand the intricacies of the financial world. You don’t need to rush into everything. See and understand how you will be highly benefited from a course in finance and quantitative modeling for analysts. The main motive behind introducing any professional course is to increase your employability rate and make you efficient.
Wanted to be an analyst but do not know where to start? Read about the courses mentioned above and you can also consult the institutes. A calm and stable mind is one of the prerequisites of this profession. So if you want to be a good financial analyst, you have to keep this in mind. I hope you found this article helpful.