Answer: In a financial modeling professional, ideally employers are looking for someone who thoroughly understands basic accounting (how to read financial statements – the Income Statement, Balance Sheet and Cash Flow Statement, and the interlinkages between all three), understands concepts such as Earnings Before Interest Taxes and Depreciation (EBITDA), differences between cash and non-cash expenses on the Income Statement, accounting ratios (Net Margin, Days of Sales Outstanding, et.), valuation parameters such as Terminal Value and Weighted Average Cost of Capital calculations, and compounding and discount techniques including mid-period assumptions.
In addition, financial modeling is about common sense, business sense, understanding the drivers that impact revenue, expenses and profit, and being able to logically develop and present a financial model so your target audience easily understands it.
Do You Want to Complete A Financial Modeling Training Course? If you are looking to learn more about completing a financial modeling training program, you should check out our self-paced financial modeling training program on the BusinessTraining.com platform, which is called the Certified Financial Modeling Specialist (CFMS).