Why MBA Graduates require Financial Modeling skills?
If you are an MBA graduate having the knowledge of finance and management then it’s obvious you have the advanced knowledge in Excel as well. After completing MBA, you will get plenty of job opportunity in various sector like financial analysis, equity research etc. You may face numerous challenges on how the different aspects of business are interacting with each other. If these interactions are organized in a structured manner and processed in a simplified way, it leads to faster decisions in business. To make decision faster we are suggesting you to go through a structured training in Financial Modeling.
What are the skills required for MBA Graduates?
As an MBA graduate, you must know the concepts of corporate finance and other theoretical aspects of the financial services industry. It’s a fact that a fresh MBA graduate is not completely ready for a corporate job. Spreadsheet modeling is one of the most important skill that you are required to have while applying for corporate jobs.
Basic and essential skills required as an MBA graduate:
- Problem solving and analytical skills
- Interpersonal and communication skills
- Strategic thinking and planning abilities
- Time management and project management skills
To get high salary package and good opportunity in a financial sector, it is required to have necessary function-specific skills such as
- Basic understanding of accounting and financial management principles
- Ability to interpret numbers and draw conclusions from results of various financial strategy changes
- Solid business judgment and desire to tackle complex business problems
- Ability to synthesize large amounts of data into small manageable chunks and then communicate these chunks both written and verbally
- Ability to recognize key factors in extensive data
- Having strong analytical and quantitative skills, number crunching and basic knowledge about Finance buzzwords
- Advanced knowledge of financial theory and the practical experience of working with MS – Excel
As an MBA graduate if you need to make business decision faster, you should have the knowledge of excel. Not just basics of Excel, you need to have advanced knowledge of MS – Excel, including financial modeling.
What is financial modeling?
Most of the finance professionals work with large amount of data as well as numbers. Almost each one of them uses MS Excel to create financial models to analyze and plan financial statements. A strong understanding of financial modeling will give you an edge over others as you’ll be able to do the work faster and accurately.
What will you learn in Financial Modeling?
Financial Modeling helps reach at optimal business solutions by analyzing various parameters such as operations, investment, financing and valuation. Financial modeling usually relates with corporate and quantitative finance applications. In financial modeling, you will learn various aspects of business for
- Understanding and creating financial model template
- Learning excel skills – shortcuts, formulas, array function and pivot tables
- Understanding of the business model and operating model
- Performing Valuation using DCF and Comparable analysis
- Working Capital & Term Loan Modeling – Debt Infusion
- Estimating value of a Merger Transaction
- Calculating Enterprise value and Implied Market capitalization
- Building flexible Charts in Excel
- Understanding VBA – Sub & Functions
- Understanding Monte Carlo Simulation
- Breaking Circular Loops using Macro
- Building Primary & Secondary Axis in a Chart
- Making of different charts: Radar Charts,
Gantt chart etc.
How financial modeling is beneficial for MBA graduates
As an MBA graduate there are various benefits you get, including the chance of a higher salary, better career opportunities and access to ideal financial environments. After getting the advance knowledge in financial modeling post MBA, you will get the opportunity to develop your financial skills that are needed to succeed in senior management.
Financial models are typically used to anatomize and analyze a company’s performance and make predictions about the company’s future. By having knowledge in building a financial model, you will open yourself up to a wide variety of career choices in Investment Banking, Equity Research, Fixed Income Research, Credit Rating and Risk Management.
A financial modeling course after MBA will not provide better career opportunities but also a salary hike you. Average salary of 7 lakhs per annum you will get after getting the financial modeling certification.
The table below shows the average salary corresponding to Financial Modeling plus a degree.
Pursuing Financial Modeling can give you an edge over the other MBA professionals. Financial Model plays an important role in long-term planning, business planning, expansion, development, cost planning etc. If you are an MBA graduate or a MBA student, we suggest you to go through the structured training in financial modeling which will improve your career growth instantly.
If you have finalized your goal of attaining the Financial Modeling Certification, the next step is to enroll in a good institution that provides training for Financial Modelling and you don’t need too far to search for it. EduPristine provides training for the Financial Modelling Course along with a certificate from BSE institute that will help you kick start your career.