Once you have the template in place, the next step is to obtain historical financials. With historical data, we are interested in the balance sheet, profit and loss account, and cash flow statement. It is common, in the course of preparing financial statements, to have a number of initial drafts which may have content that will been superseded when the final statements are agreed. Ensure that the financials you are given are the final audited financial statements. The more information you have, the more accurate your projections. However, you must not get carried away, as too much information will make the model unnecessarily cumbersome. Generally, historical data is limited to five years, with another five years of projected financials. Try to get soft copies of the historical financials in Excel readable format, as this will significantly reduce the...
Hands-On Financial Modeling with Microsoft Excel 2019
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Hands-On Financial Modeling with Microsoft Excel 2019
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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)
Preface
Introduction to Financial Modeling and Excel
Steps for Building a Financial Model
Section 2: The Use of Excel - Features and Functions for Financial Modeling
Formulas and Functions - Completing Modeling Tasks with a Single Formula
Applying the Referencing Framework in Excel
Section 3: Building an Integrated Financial Model
Understanding Project and Building Assumptions
Asset and Debt Schedules
Cash Flow Statement
Ratio Analysis
Model Testing for Reasonableness and Accuracy
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