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

Advantages of Power Query

Although many of the actions taken in it could be done using traditional Excel formulas, Power Query has several advantages that make it irresistible:

  • Import data from multiple sources: With Power Query, you can now import data in a wide range of different formats such as .txt, .csv, .xls, and PDF. You can even extract data from databases and the web.
  • Simplicity: Especially for users who find formulas a daunting prospect, Power Query provides a simpler and much more pleasant way of getting things done.

With a few clicks of the mouse, you are able to achieve what complex formulas can do and much more.

  • Large datasets: Power Query can comfortably work with datasets of tens, and even hundreds, of millions of rows.
  • Speed: Working out what formulas to use to clean data, constructing the formulas, and then applying them can be time-consuming. The same result can be achieved in Power Query with just a few clicks of the mouse.
  • File...