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


In this chapter, we have seen that without thorough knowledge of the nature and purpose of a project, you could end up with a model that doesn't meet the specifications of your client. We have learned about the nature of and reason for assumptions, as well as the importance of discussions with management in projecting your assumptions into the future. In making our assumptions, we have realized the importance of historical financials, balance sheets, profit and loss accounts, and cash flow statements. We have also learned about historical financials, which are an essential starting point in resolving anomalies that may arise in our model.

In the next chapter, Asset and Debt Schedules, we will learn how to project long-term assets and borrowings. We will be introduced to different approaches: a complex but more accurate method, and a simple, more subjective approach...