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

Asset and Debt Schedules

At this stage, the projected balance sheet and profit and loss accounts are complete except for the effects of capital expenditure (CapEx)—purchase, disposal and depreciation, long-term debt, fresh issues, repayments, and interest charges. The fixed asset, depreciation, and debt schedules are very important to our model as they tend to appear as very significant amounts in financial statements. These are long-term balances and are not covered by growth drivers. You will rely on the client to give you information about their plans for CapEx and debt for over the next five years. If you have no information on this, you will generally assume that the existing balances will continue to be serviced for the duration of the projected years, or until they are fully written down or offwhichever comes first.

This chapter covers the following topics...