Aircraft Lease Modelling in Excel

Course Overview: The workshop is designed to demonstrate the benefits of best practice in Excel modelling by building an aircraft lease model in stages showing how the financial theory can be integrated into the modelling framework. In particular the workshop builds the individual cash flows and calculates the returns and provides clear reporting and analysis. By attending this practical three day training course, you will: Learn how to build a comprehensive aircraft leasing model Develop the principles of spreadsheet best practice Apply corporate finance theory Gain a clear understanding of the building blocks of the model Ensure accuracy when auditing and testing models Comprehend the methods for exploring sensitivity and risk analysis Understand how to present information and findings clearly Who should attend: This is a course for analysts and practitioners who want to use Excel as a tool to assist with the decision making process. Senior financial professionals using Excel spreadsheets who should attend include: Financial analysts Aircraft analysts CFO’s Financial controllers Analysts Credit managers Risk managers Corporate finance staff
Day 1 Lease Modelling and Pricing Module 1 Introduction and Overview – Outline of financial modelling for leasing – Overview of market and lease types – Examples of Excel financial models Exercise: analysing examples of modelling techniques Concepts of spreadsheet best practice Common modelling errors Module 2 Lease Model Design – Model design and structure – key steps Exercise: Defining a model plan for a leasing model – Key Excel methods Exercise: starting a financial calculator Module 3 Financial Mathematics – Basic concepts – Interest rates – Time value of money – Net present value and internal rates Exercise: building examples Module 4 Pricing and Structuring – Review of pricing theory – Calculating lease NPV and IRR – Cost of capital – Return measures Exercise: transforming course model into a pricing model Questions and answers Day 2 Cash Flow and Accounting Module 5 Cash Flow 1 – Rental inputs – Time lines, masks and flags – Rental cash flow Exercise: calculating revenue Module 6 Cash Flow 2 – Financing – Final values – Maintenance reserves – Final cash flow Exercise: completing lease cash flow Module 7 Accounting Statements – Income statement – Balance sheet – Integrity checks Exercise: completing accounting statements Module 8 Initial Results – Net present value – Internal rates – Modified rates Exercise: producing single point answers Questions and answers Day 3 Risk and Reporting Module 9 Auditing and Testing – Essential testing and auditing techniques – Built in Excel methods Exercise: testing course model Module 10 Risk and Sensitivity – Excel sensitivity techniques – Examination of key model drivers – Quantification of risk Exercise: adding sensitivity to course model Module 11 Targeting and Optimisation – Goal Seek – Solver Module 12 Optimisation methods Exercise: checking and improving model outcomes Module 13 Practical - Reporting and Model Completion – Management information – Charting – Documentation and auditing Exercise: completing course model for reporting