Book Image

Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

By : Shmuel Oluwa
Book Image

Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

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 Excel for Microsoft 365 explores financial modeling terminologies with the help of Excel. Starting with the key concepts of Excel, such as formulas and functions, this updated second edition will help you to learn all about referencing frameworks and other advanced components for building financial models. As you proceed, you'll explore the advantages of Power Query, learn how to prepare a 3-statement model, inspect your financial projects, build assumptions, and analyze historical data to develop data-driven models and functional growth drivers. Next, you'll learn how to deal with iterations and provide graphical representations of ratios, before covering best practices for effective model testing. Later, you'll discover how to build a model to extract a statement of comprehensive income and financial position, and understand capital budgeting with the help of end-to-end case studies. By the end of this financial modeling Excel book, you'll have examined data from various use cases and have developed the skills you need to build financial models to extract the information required to make informed business decisions.
Table of Contents (19 chapters)
1
Part 1 – Financial Modeling Overview
4
Part 2 – The Use of Excel Features and Functions for Financial Modeling
8
Part 3 – Building an Integrated 3-Statement Financial Model with Valuation by DCF
15
Part 4 – Case Study

Mixed referencing

As mentioned earlier, a cell reference is made up of the row and column that intercept to form that cell. Thus, if a cell is in column G, row 59, its cell reference is G59, G being the column part and 59 the row part of the cell reference. No two cells can have the same cell reference on the same worksheet.

Mixed referencing occurs when you need to lock either the column part only, leaving the row part of the reference relative, or lock the row part only, leaving the column part of the reference relative. This is demonstrated in the following example.

You should take note of the following two things:

  • Firstly, the referencing framework is only relevant when you want to copy a formula to another location.
  • Secondly, its main function is to make it possible for you to enter a formula once and then copy it over a range that contains cells with formulas that have cell references in a similar position to the active cells.

While this framework allows...