LEVEL 2: CHARTERED FINANCIAL MODELER (CFM)

Earning the Level 2 Chartered Financial Modeler (CFM) demonstrates an advanced and thorough understanding of Financial Modeling, Financial Analysis and Advanced Excel. Eligible candidates must have completed Level 1 AFM.

Next Exams Start in October 2021

Why earn the CFM?

Obtaining the Level 2 Chartered Financial Modeler (CFM) will prove to yourself and to others that you can handle whatever modeling situation you encounter.

The Level 1 AFM tested the fundamentals of financial modeling that would be present in an ideal analyst. The Level 2 CFM builds on these skills by introducing elements of financial analysis and problem-solving that would be present in a leading analyst or manager.

Who is it for?

Level 2 (CFM) is for Professionals who:

  • Work closely with team leaders to provide financial modeling insights
  • Ensure projects progress according to financial modeling best practices
  • Use models to demonstrate the business case and “tell the story”

What CFM Graduates are saying

MARIA ANGELICA FERNANDEZ, AFM, CFM
CFA Level III Candidate - Philippines
ANDREAS PAPASTAVROU, CFM | CFM AS OF OCTOBER 2019
Owner & Manager - Excel Business Modeling Solutions / Big4WallStreet.com | Athens, Greece
DURHAM BROWN, CFM | CFM AS OF OCTOBER 2019
Analyst - JPA Financial Modeling | Sydney, Australia
ANDREW GRIGOLYUNOVICH, CFM, CFA | CFM AS OF OCTOBER 2018
Founder & CEO - AG Capital | Riga, Latvia

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Level 2 Topics Covered

Body of Knowledge: Level 2 (CFM) Exam

The CFM certification is ideal for a candidate who work closely with team leaders to provide financial modeling insights, ensure projects progress according to financial modeling best practices and use models to demonstrate the business case and “tell the story”. 

During this 4-hour exam, candidates will complete a selection of questions from the following list of complex modeling topics:

Accounting70%
Finance70%
Financial Analysis50%
Valuations0%
Microsoft Excel100%

Operational Questions

  • Revenue: Create a detailed revenue schedule that considers allocations by
    division, geography, capacity constraints, currency issues
  • Operating Costs: Create a detailed cost structure that includes tiered pricing on variable costs, multi-currency costing, semi-variable costs
  • Depreciation: Incorporate accelerated depreciation, build functionality to prevent over-depreciation of assets
  • Working Capital: Detailed inventory modeling, forecast Accounts Receivable and Accounts Payable in a monthly model
  • Income Tax: Utilize cascading tax pools/tax losses, calculate earnings for a company in multiple jurisdictions including the impact of timing differences
  • Debt: Build an advanced capital structure, incorporate multiple pieces of debt, model various debt types and covenants, sweeps, repayments and debt sculpting, incorporate refinancing switches
  • Equity: Incorporate various concepts including convertibles, buybacks,
    options/warrants, tiered dividends, and dilutive instruments
  • Subsidiaries: Calculate non-controlling interests and long-term investments

Model Robustness

  • Model Automation: Create a detailed and automated summary page
  • Model Checking: Audit various calculation, linking, and other errors in a model
  • Data Management: Perform data management with large data sets

Situational Analysis

  • Timing Flexibility: Automate modeling starting/ending dates, multiple timing periods in a model
  • Sensitivity Analysis: Prepare analysis to automatically sensitize model outputs

Register for Level 2