#### 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.
Preface
Free Chapter
Section 1: Financial Modeling - Overview
Introduction to Financial Modeling and Excel
Steps for Building a Financial Model
Section 2: The Use of Excel - Features and Functions for Financial Modeling
Formulas and Functions - Completing Modeling Tasks with a Single Formula
Applying the Referencing Framework in Excel
Section 3: Building an Integrated Financial Model
Understanding Project and Building Assumptions
Asset and Debt Schedules
Cash Flow Statement
Valuation
Model Testing for Reasonableness and Accuracy
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# Additional schedules and projections

One of the first things you will notice in the preceding screenshot is that the Balance Check is now red and FALSE for the projected years. This is because our balance sheet and profit and loss account are not yet complete. We have projected growth for most items, but there are certain items that require specific treatment, CapEx, depreciation, loans, and interest.

ASSET SCHEDULE: This schedule is prepared to capture the movement in property, plant, and machinery. The following screenshot shows the full Capex and Depreciation Schedule values:

The company's plans for CapEx over the duration of the model will be reflected here. Historical CapEx and disposal of assets will be shown under the years during which the expenditure or sale took place. The schedule will also take into account the cost of the assets and useful life and depreciation...