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
1
Section 1: Financial Modeling - Overview
4
Section 2: The Use of Excel - Features and Functions for Financial Modeling
7
Section 3: Building an Integrated Financial Model

Creating a loan amortization schedule

Let's assume that you work at a bank and a customer has requested a home loan. However, the customer doesn't want any of the pre-made packages on offer and wants a customized loan for a specific tenure and amount. In such cases, the calculations to compute the detailed schedule might take a lot of time, which is valuable when it comes to dealing with customers. It would be really useful to have a unique model tailored to your needs, which can easily compute values for all kinds of loans. We will now learn how to create one such schedule here, implementing most of the things we have learned in this chapter.

Creating the template

Our first step is to create a common template that...