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

Understanding the nature and purpose of a project

In order to determine the nature and purpose of a project, you will need to address a number of questions, which are as follows:

  • What is the project seeking to do?
  • Are you seeking to value something, project something, or both?
  • What is the focus or scope of the project?
  • Are you looking at the business as a whole, or a section of the business, or a particular asset, plant, or equipment?
  • Who is the target audience?
  • Is it for internal or personal use, or for presentation to a wider audience?
  • Is it a select, knowledgeable audience or the general public?
  • Is there any specialist or technical part of the project that will require you to engage an expert in that field?

The answers to each one of these questions will have an impact on how you approach your model, what type of model you build, and how detailed it is.