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Body of Knowledge

Body of Knowledge

The CFI Body of Knowledge represents the main topics, skills, and abilities required to successfully complete the program. The CFI Program is designed to instill the practical skills required to perform world-class financial analysis.

I. Accounting
  • Constructing a balance sheet and income statement
  • Constructing a cash flow statement
  • Understanding the balance sheet
  • Understanding the income statement and cash flow
II. Budgeting, Forecasting, FP&A
  • Budgeting Within a Strategic Framework
  • Building a Robust Budgeting Process
  • A Practical Guide to Developing Budgets
  • Forecasting Techniques
  • Tracking Budget Performance with Variance Analysis
  • Applied Budgeting Tools and Techniques in Excel
  • Financial Modeling Best Practices
  • Modeling Cash Flows
  • Building Your Financial Model in Excel
  • Enhancing Your Model
III. Excel
  • Excel layout
  • Excel settings
  • Basic financial analysis setup
  • Advanced financial analysis setup
  • Functions and formulas
  • Excel tips and tricks
  • Better formulas
  • Catering for uncertainty
  • Auditing a model
  • Excel template setup
  • Financial statements
  • Financial analysis
  • Macros
  • Introduction to VBA for financial modeling in Excel
  • Design, build and run VBA sub procedures
  • Create customized Excel functions
  • Branching, looping and procedure code
IV. Finance
  • Fixed income products and markets
  • Pricing fixed income securities and duration
  • Overview of Corporate Finance
  • Business valuation
  • Mergers & Acquisitions
  • Debt financing
  • Equity financing
  • Corporate finance careers
  • Decision making biases and errors
  • Information processing errors
  • How decisions are impacted by others
V. Financial Analysis
  • Vertical and horizontal income statement analysis
  • Balance sheet and leverage ratios
  • Cash flow statements and ratios
  • Rates of return and profitability analysis
VI. Financial Modeling
  • Financial Modeling
  • A structured approach to financial modeling
  • Forecasting income statement and balance sheet items
  • Debt and financing schedules
  • Building a free cash flow forecast
  • Scenario analysis
  • Sensitivity analysis
  • Cap Rates and Net Operating Income (NOI)
  • Land Loans and Construction Loans
  • Real Estate Development Financial Model
  • Joint Ventures & Cash Flow Waterfalls
  • eCommerce Financial Model
  • Customer Metrics
  • DCF Valuation Modeling
  • Introduction to the Mining Industry
  • Valuation Metrics
  • Mining Financial Model
  • M&A Model Structure
  • Acquirer & Target Models
  • Transaction Assumptions
  • Closing Balance Sheet
  • Pro Forma Financial Model
  • Accretion & Dilution
VII. Math
  • Discounted Cash Flow (DCF)
  • Bond pricing and yields
  • Key statistical skills
  • Covariance, correlation and regression
VIII. Presentation
  • Data Visualization Overview
  • Visuals
  • Focus attention
  • Storytelling
  • Dashboards
  • Charts, Tables and Graphs
IX. Valuation
  • Introduction
  • Equity Value vs. Enterprise Value
  • Valuation Multiples
  • Comparable Company Analysis (Comps)
  • Precedent M&A Transactions (Precedents)
  • Discounted Cash Flow (DCF) Analysis
  • Weighted Average Cost of Capital (WACC)
  • Presentation of Results