Financial Modelling Job Options

Job Options if you know Financial Modelling

 Job Options if you know Financial Modelling

What is Financial Modelling?

Financial Modelling is now one of the most important skills to make a career in the main stream finance industry. It refers to the process of creating a model using MS Excel to project the financial statements for a company.

Basic excel & financial accounting are two basic prerequisite for creating a Financial Model. Once you know Excel & Financial accounting, then you need to understand only the business logic or business model of the company and you will be able to prepare a dynamic Financial Model from scratch.

Here let me tell you that most of the time when you work in a company, you will not be creating models from scratch but you will only updating new data in the models or sometimes you will modify the existing model for a new client or for some different objective.

Job options if you know Financial Modelling

  1. Equity Research: Working on Financial Models (Creating, Modifying or updating) is the everyday task of an Equity research analysts and they spend a considerable amount of time on financial models.
  2. Investment Banking: Investment Bankers use Financial Models to perform valuations to arrive at a value of a target company based on which they pitch buyers/sellers.
  3. Credit Research: Credit rating agencies use Financial Models to find the strength and weakness of the firm to evaluate credit quality of company. Based on the findings, they assign a certain rating to the company.
  4. Project Finance: When a company invests in any project they want to evaluate their financial profitability based on their Financial Models. Project Finance has always been a very lucrative and highly paid profile for MBA, CA and CFA.
  5. Portfolio Investments: It is critical to evaluate equity investments in your portfolio, when you are looking to seek higher returns as compared to debt.
  6. Consultancy: Consultancy firms advise their clients “From where the clients should take loan or issue equity, whether they should make a JV or go individually in a project or how to start a new business”. Every advise is based on Financial Modelling analysis.
  7. There are many other job areas like Hedge funds, KPO, Private equity where Financial Modelling is required as most prominent skill.

 

So at last, Financial Modelling skill is generally not taught to students in academics and without Financial Modelling it is difficult to enter main stream Finance profile.

So there are many Institute offering advance level training of Financial Modelling and Valuations Using excel & macro. You must enquire everything about the institute before you enrol there as it is going to be your most important investment of your life.

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