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

Building a template for your model

It is always important to be systematic in the way you build and maintain your model. Even if you alone will make use of the model, whenever you have cause to revisit the model after a period of time, you would not want to have to wade through various schedules and worksheets to find what you need.

This is even more important if your model is going to be used by someone else.

A good way to ensure that your model is easy to follow, and use is to build a template (a standard format) with some simple rules guiding how data is to be input and presented. In general, you will require at least six columns of figures, three each of historical and projected years, and another three or four columns for descriptive information. The template should enhance navigation and be easy to follow. The first major decision is whether to adopt a single worksheet or...