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

Steps for Building a Financial Model

Any project you wish to undertake should begin with gaining an accurate understanding of what the project is all about. If you start off in the wrong direction, one of three things will happen:

  • Part way through the project, you'll realize that this is not what the client wants, and you'll then have to start all over again
  • You'll end up convincing the client to accept a project that was never intended
  • You'll persist with the wrong project and it'll end up being rejected

So much depends on this stage that it typically takes up about 75% of your total modeling time.

In this chapter, we will cover the following topics:

  • Discussions with management
  • Building assumptions
  • Building a template for your model
  • Historical data
  • Projecting the balance sheet and profit and loss account
  • Additional schedules and projections
  • Cash flow...