Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By : Shmuel Oluwa
Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By: Shmuel Oluwa

Overview of this book

Financial modeling is a core skill required by anyone who wants to build a career in finance. Hands-On Financial Modeling with Microsoft Excel 2019 explores terminologies of financial modeling with the help of Excel. This book will provides you with an overview of the steps you should follow to build an integrated financial model. You will explore the design principles, functions, and techniques of building models in a practical manner. Starting with the key concepts of Excel, such as formulas and functions, you will learn about referencing frameworks and other advanced components for building financial models. Later chapters will help you understand your financial projects, build assumptions, and analyze historical data to develop data-driven models and functional growth drivers. The book takes an intuitive approach to model testing and covers best practices and practical use cases. By the end of this book, you will have examined the data from various use cases, and have the skills you need to build financial models to extract the information required to make informed business decisions.
Table of Contents (15 chapters)
Free Chapter
Section 1: Financial Modeling - Overview
Section 2: The Use of Excel - Features and Functions for Financial Modeling
Section 3: Building an Integrated Financial Model

Cash Flow Statement

The following list shows our agenda and the next stage is the preparation of the cash flow statement:

  • Record the historical profit and loss and balance sheet
  • Calculate the historical growth drivers
  • Project the growth drivers for the profit and loss accounts and balance sheet
  • Build up the projected profit and loss accounts and balance sheet
  • Prepare the asset and depreciation schedule
  • Prepare the debt schedule
  • Prepare the cash flow statement
  • Ratio analysis
  • DCF valuation
  • Other valuations
  • Scenario analysis

At this stage, we have completed the profit and loss account and the only item left to complete the balance sheet, which is still out of balance, is cash. In this chapter, we will look at how to prepare the cash flow statement for our project.

In this chapter, we will cover the following topics:

  • Introduction to the cash flow statement
  • Items not involving...