Mergers and acquisitions (M&A) are complex transactions requiring deep financial analysis and strategic planning. While corporate development teams and investment banking advisors drive deal execution, FP&A teams often provide critical financial analysis and insights. The level of FP&A involvement, however, varies widely by company and deal structure. This FAQ answers key questions about FP&A’s role…
Debt vs. Equity: How Companies Make Capital Structure Decisions How do companies decide between debt and equity financing? Every corporate finance professional needs to understand capital structure—the mix of debt and equity that funds a company’s growth, operations, and strategic moves. In this episode of Corporate Finance Explained, we break down the key concepts, trade-offs, and…
Why Learning Financial Modeling is Critical for a Career in Finance Dreaming of a career in investment banking, private equity, or financial planning and analysis (FP&A)? Learning financial modeling is your ticket. This skill gives you insights into the financial health of businesses, positions you to evaluate large financial transactions, and makes data-driven financial decisions…
What is Explainable AI in Finance? Would you trust a financial advisor who refused to explain their investment recommendations? Probably not. So why should consumers trust AI-driven decisions if no one can explain how they were made? When AI decisions aren’t explainable, financial institutions risk fines, customer complaints, and a damaged reputation. Explainable AI (XAI)…
AI and Ethical Financial Decision-Making Your creditworthiness. Your insurance premium. Your ability to buy a home. AI models influence all of these decisions — but are they making them fairly? AI ethics in finance is about ensuring that AI-driven decisions uphold fairness, transparency, and accountability. When AI models inherit biases from flawed data or poorly…
How EBITDA and Net Income Shape Financial Performance When evaluating a company’s profitability, two key metrics often come into play: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Net Income. While both provide valuable insights into financial performance, they serve different purposes in financial analysis, modeling, valuation, and decision-making. Understanding the differences between EBITDA…
How Do Top Finance Teams Build and Use Financial Models To Drive Billion-Dollar Decisions? In this episode of Corporate Finance Explained, we break down the key techniques and best practices in financial modeling—a must-have skill for corporate finance professionals. What You’ll Learn: The Role of Financial Modeling – How companies use models for budgeting, valuation,…
How to Build a Career in FP&A | Finance Jobs, Skills & Growth Insights Financial Planning & Analysis (FP&A) is one of the fastest-growing fields in finance, but many professionals don’t fully understand what the role entails. In this episode of CFI’s Careers in Finance series, we sit down with Mimi Hu, Director of Trade…
The Strategic Importance of Choosing the Right Forecasting Model Forecasting financial performance isn’t a one-size-fits-all process. The right approach depends on the business model, available data, and the purpose of the forecast. Financial analysts rely on forecasting models to predict future performance and guide critical business decisions. But which method works best? In this guide,…
When Numbers and Strategy Collide: The Financial Modeling Disconnect Suppose you work as a financial analyst for a mid-sized retailer that launches a new premium product line. Six months later, financial forecasts show a 40% revenue shortfall. Why? Their models used historical performance data without factoring in the business’s strategic shift to premium positioning. This…
