"Strong financial modelling skills"

Plus, while excel modeling skills are not so rare, being able to correctly apply them and differentiate between historic occurence, probability, and possibility, so you’re boss isn’t giving the Senate Committee a blank stare in response to being asked, “So, let me get this straight, your bank’s MBS models wouldn’t accept negative price movement inputs?” is.
 
Huh…Sorry but advanced modelling in excel using VBA is likely to be a support job, i.e. building tools that the real finance guys use.
Just my 0.02€
 
I agree with Black Swan. You have no idea how many new people come in and ask you “so exactly what you want me to do”.
Being able to put in some fancy formula when given exact instruction is one thing, being able to logically put together a solution and able to defend every assumption you made when asked is another
 
Strong financial modelling skills = being able to create an earnings or company model that links all the financial statements with forecasts.
Linking financial statements or computing ratios is the easy part.
Forecasting is the harder part because your model is only as good as your assumptions. To forecast, it requires an understanding on the drivers of revenue and being able to model that logic on to a spreadsheet.
 
hobbes928 Wrote:
——————————————————-
> Strong financial modelling skills = being able to
> create an earnings or company model that links all
> the financial statements with forecasts.
>
> Linking financial statements or computing ratios
> is the easy part.
>
> Forecasting is the harder part because your model
> is only as good as your assumptions. To forecast,
> it requires an understanding on the drivers of
> revenue and being able to model that logic on to a
> spreadsheet.
+ 1
 
It means you are able to build a 20+ page LBO/recapitalization model from scratch… and know exactly how everything flows together.
Excel is still king for front office roles as far as I know…
 
Why does Financial Modeling = Excel programming, spreadsheets right away to everyone?
Once upon a time there was no excel, no vba or the like. Warren Buffet and the like still made alot of money and valued companys.
Financial Modeling has nothing to do with excel, excel is just a fancy tool.
 
my cfo makes me do all my m&a valuations long-hand. it’s not so bad. i wish i didn’t have to use pen, though.
 
momothetired Wrote:
——————————————————-
> I see this line in most PE job ads.
>
> What exactly does this entail?
>
> Simple inputting formulae into an excel sheet?
>
> Sorry if this is a noob question, my background is
> in com sci / EE, and I’m really curious.
>
> Any idea if there are any online examples?
I don’t know VBA, but I consider that I have strong financial modelling skills on the grounds that I can build a DDM or DCF reliably and in a short space of time. I don’t think it means anything more than that.
 
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