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

Creating a quick cash flow statement

Now that you have learned how to create a cash flow statement and everything you need to do, let's go ahead and prepare a simple statement for a specific scenario. Let's assume that you are the founder of a web design company and you need to keep tabs on everything that you spend money on, because as a start-up, capital is vital to the development of the company. We will create a simple cash flow statement to track the first year of expenses, so that we can understand whether it will be profitable to proceed with the company later down the line:

  1. We will begin by creating two cells at the top, with the financial year and the cash invested at the beginning of that year, as follows:
  1. As we have learned in this chapter, cash flow will be divided into three main sections, the first of which is operational activities. So, let's...