#### 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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# Working with lookup functions

Lookup functions are some of the most widely used functions in Excel. Generally, the intention is to fetch a value from one table (the source) to the active cell in which you are typing the formula (the target). Essentially, the function guides Excel to identify a row and column in the source table. The intersection of that row and column will give you the source cell whose value you want to extract. For example, say you have a sales report that includes data for various products sold within a specified period and you wish to populate a field, Product Cost, with the cost of each of the products in your report.

The following screenshot is a sample sales report showing details of daily sales including Product, Salesperson, and other details:

Unit Cost for each product can be obtained from a products database.

You could use a lookup function to locate...