Table Of Content

Cover Page: iv Introduction Page: xi About This Book Page: 1 Foolish Assumptions Page: 2 Icons Used in This Book Page: 2 Beyond the Book Page: 3 Where to Go from Here Page: 3 Part 1: Getting Started with Financial Modeling Page: 5 Chapter 1: Introducing Financial Modeling Page: 6 Defining Financial Modeling Page: 7 Looking at Examples of Financial Models Page: 10 Chapter 2: Getting Acquainted with Excel Page: 14 Making Sense of the Different Versions of Excel Page: 15 Defining Modern Excel Page: 21 Recognizing the Dangers of Using Excel Page: 23 Looking at Alternatives and Supplements to Excel Page: 28 Chapter 3: Planning and Designing Your Financial Model Page: 30 Identifying the Problem That Your Financial Model Needs to Solve Page: 31 Designing How the Problem’s Answer Will Look Page: 34 Gathering Data to Put in Your Model Page: 39 Documenting the Limitations of Your Model Page: 41 Considering the Layout and Design of Your Model Page: 42 Chapter 4: Building a Financial Model by the Rulebook Page: 47 Document Your Assumptions Page: 49 Create Dynamic Formulas Using Links Page: 54 Only Enter Data Once Page: 56 Model with Consistent Formulas Page: 57 Build in Error Checks Page: 59 Format and Label for Clarity Page: 63 Chapter 5: Using Someone Else’s Financial Model Page: 63 Considering Templates for Building a Financial Model Page: 66 Inheriting a File: What to Check For Page: 69 Using Audit Tools to Find and Correct Errors Page: 77 Part 2: Diving Deep into Excel Page: 89 Chapter 6: Excel Tools and Techniques for Financial Modeling Page: 90 Referencing Cells Page: 91 Naming Ranges Page: 100 Linking in Excel Page: 104 Using Shortcuts Page: 109 Restricting and Validating Data Page: 113 Goal Seeking Page: 117 Chapter 7: Using Functions in Excel Page: 119 Identifying the Difference between a Formula and a Function Page: 121 Finding the Function You Need Page: 122 Getting Familiar with the Most Important Functions Page: 123 Being Aware of Advanced Functions and Functionality Page: 156 Chapter 8: Applying Scenarios to Your Financial Model Page: 158 Identifying the Differences between Types of Analysis Page: 160 Building Drop-Down Scenarios Page: 161 Applying Sensitivity Analysis with Data Tables Page: 167 Using Scenario Manager to Model Loan Calculations Page: 175 Chapter 9: Charting and Presenting Model Output Page: 179 Deciding Which Data to Display Page: 182 Conveying Your Message by Charting Scenarios Page: 184 Deciding Which Type of Chart to Use Page: 186 Dynamic Charting Page: 204 Preparing a Presentation Page: 209 Part 3: Building Your Financial Model Page: 211 Chapter 10: Building an Integrated Financial Statements Model Page: 212 Getting to Know the Case Study Page: 214 Entering Assumptions Page: 215 Calculating Revenue Page: 219 Calculating Expenses Page: 222 Building the Income Statement Page: 227 Building the Cash Flow Statement Page: 232 Building the Balance Sheet Page: 236 Building Scenarios Page: 241 Chapter 11: Building a Discounted Cash Flow Valuation Page: 245 Understanding How the Discounted Cash Flow Valuation Works Page: 248 Step 1: Calculating Free Cash Flow to Firm Page: 249 Step 2: Calculating Weighted Average Cost of Capital Page: 252 Step 3: Finding the Terminal Value Page: 253 Discounting Cash Flows and Valuation Page: 254 Chapter 12: Budgeting for Capital Expenditure and Depreciation Page: 255 Getting Started Page: 258 Output 1: Calculating Cash Required for Budgeted Asset Purchases Page: 261 Output 2: Calculating Budgeted Depreciation Page: 266 Output 3: Calculating the Written-Down Value of Assets for the Balance Sheet Page: 273 Part 4: The Part of Tens Page: 275 Chapter 13: Ten Strategies for Reducing Error Page: 276 Using the Enter Key Page: 277 Checking Your Work Page: 278 Checking It Again Page: 279 Getting Someone Else to Check Your Work Page: 280 Documenting Assumptions Page: 280 Documenting Methodology with a Flowchart Page: 281 Stress-Testing with Sensitivity Analysis Page: 281 Conducting a Scenario Analysis Page: 283 Taking Note of Excel Error Values Page: 284 Including Error Checks Page: 285 Chapter 14: Ten Common Pitfalls to Avoid Page: 285 The Numbers Don’t Add Up Page: 287 You’re Getting #REF! Errors Page: 288 You Have Circular References Page: 288 The Model Has Too Much Detail Page: 290 The File Size Is Out of Control Page: 291 Your Model Is Full of “Spaghetti” Links Page: 293 The Formulas Are Unnecessarily Long and Complicated Page: 295 No One Is Paying Attention to the Model Page: 296 You Don’t Want to Let Go Page: 296 Someone Messes Up Your Model Page: 297 About the Author Page: 317 Advertisement Page Page: 319 Connect with Dummies Page: 324 End User License Agreement Page: 324

Description:
Make informed business decisions with the beginner's guide to financial modeling using Microsoft Excel

Financial Modeling in Excel For Dummies is your comprehensive guide to learning how to create informative, enlightening financial models today. Not a math whiz or an Excel power-user? No problem! All you need is a basic understanding of Excel to start building simple models with practical hands-on exercises. Before you know it, you’ll be modeling your way to optimized profits for your business in no time. Excel is powerful, user-friendly, and is most likely already installed on your computer--which is why it has so readily become the most popular financial modeling software. This book shows you how to harness Excel's capabilities to determine profitability, develop budgetary projections, model depreciation, project costs, value assets, and more. You'll learn the fundamental best practices and know-how of financial modeling, and how to put them to work for your business and your clients. You'll learn the tools and techniques that bring insight out of the numbers and make better business decisions based on quantitative evidence. You'll discover that financial modeling is an invaluable resource for your business, and you'll wonder why you've waited this long to learn how!

Companies around the world use financial modeling for decision making, to steer strategy, and to develop solutions. This book walks you through the process with clear, expert guidance that assumes little prior knowledge.

  • Learn the six crucial rules to follow when building a successful financial model
  • Discover how to review and edit an inherited financial model and align it with your business and financial strategy
  • Solve client problems, identify market projections, and develop business strategies based on scenario analysis
  • Create valuable customized templates models that can become a source of competitive advantage

From multinational corporations to the mom-and-pop corner store, there isn't a business around that wouldn't benefit from financial modeling. No need to buy expensive specialized software--the tools you need are right there in Excel. Financial Modeling in Excel For Dummies gets you up to speed quickly so you can start reaping the benefits today!

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Financial Modeling in Excel For Dummies PDF

2017·86.7 MB·English
by  Danielle Stein Fairhurst
#Business & Economics #Corporate Finance
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Cover Page: iv Introduction Page: xi About This Book Page: 1 Foolish Assumptions Page: 2 Icons Used in This Book Page: 2 Beyond the Book Page: 3 Where to Go from Here Page: 3 Part 1: Getting Started with Financial Modeling Page: 5 Chapter 1: Introducing Financial Modeling Page: 6 Defining Financial Modeling Page: 7 Looking at Examples of Financial Models Page: 10 Chapter 2: Getting Acquainted with Excel Page: 14 Making Sense of the Different Versions of Excel Page: 15 Defining Modern Excel Page: 21 Recognizing the Dangers of Using Excel Page: 23 Looking at Alternatives and Supplements to Excel Page: 28 Chapter 3: Planning and Designing Your Financial Model Page: 30 Identifying the Problem That Your Financial Model Needs to Solve Page: 31 Designing How the Problem’s Answer Will Look Page: 34 Gathering Data to Put in Your Model Page: 39 Documenting the Limitations of Your Model Page: 41 Considering the Layout and Design of Your Model Page: 42 Chapter 4: Building a Financial Model by the Rulebook Page: 47 Document Your Assumptions Page: 49 Create Dynamic Formulas Using Links Page: 54 Only Enter Data Once Page: 56 Model with Consistent Formulas Page: 57 Build in Error Checks Page: 59 Format and Label for Clarity Page: 63 Chapter 5: Using Someone Else’s Financial Model Page: 63 Considering Templates for Building a Financial Model Page: 66 Inheriting a File: What to Check For Page: 69 Using Audit Tools to Find and Correct Errors Page: 77 Part 2: Diving Deep into Excel Page: 89 Chapter 6: Excel Tools and Techniques for Financial Modeling Page: 90 Referencing Cells Page: 91 Naming Ranges Page: 100 Linking in Excel Page: 104 Using Shortcuts Page: 109 Restricting and Validating Data Page: 113 Goal Seeking Page: 117 Chapter 7: Using Functions in Excel Page: 119 Identifying the Difference between a Formula and a Function Page: 121 Finding the Function You Need Page: 122 Getting Familiar with the Most Important Functions Page: 123 Being Aware of Advanced Functions and Functionality Page: 156 Chapter 8: Applying Scenarios to Your Financial Model Page: 158 Identifying the Differences between Types of Analysis Page: 160 Building Drop-Down Scenarios Page: 161 Applying Sensitivity Analysis with Data Tables Page: 167 Using Scenario Manager to Model Loan Calculations Page: 175 Chapter 9: Charting and Presenting Model Output Page: 179 Deciding Which Data to Display Page: 182 Conveying Your Message by Charting Scenarios Page: 184 Deciding Which Type of Chart to Use Page: 186 Dynamic Charting Page: 204 Preparing a Presentation Page: 209 Part 3: Building Your Financial Model Page: 211 Chapter 10: Building an Integrated Financial Statements Model Page: 212 Getting to Know the Case Study Page: 214 Entering Assumptions Page: 215 Calculating Revenue Page: 219 Calculating Expenses Page: 222 Building the Income Statement Page: 227 Building the Cash Flow Statement Page: 232 Building the Balance Sheet Page: 236 Building Scenarios Page: 241 Chapter 11: Building a Discounted Cash Flow Valuation Page: 245 Understanding How the Discounted Cash Flow Valuation Works Page: 248 Step 1: Calculating Free Cash Flow to Firm Page: 249 Step 2: Calculating Weighted Average Cost of Capital Page: 252 Step 3: Finding the Terminal Value Page: 253 Discounting Cash Flows and Valuation Page: 254 Chapter 12: Budgeting for Capital Expenditure and Depreciation Page: 255 Getting Started Page: 258 Output 1: Calculating Cash Required for Budgeted Asset Purchases Page: 261 Output 2: Calculating Budgeted Depreciation Page: 266 Output 3: Calculating the Written-Down Value of Assets for the Balance Sheet Page: 273 Part 4: The Part of Tens Page: 275 Chapter 13: Ten Strategies for Reducing Error Page: 276 Using the Enter Key Page: 277 Checking Your Work Page: 278 Checking It Again Page: 279 Getting Someone Else to Check Your Work Page: 280 Documenting Assumptions Page: 280 Documenting Methodology with a Flowchart Page: 281 Stress-Testing with Sensitivity Analysis Page: 281 Conducting a Scenario Analysis Page: 283 Taking Note of Excel Error Values Page: 284 Including Error Checks Page: 285 Chapter 14: Ten Common Pitfalls to Avoid Page: 285 The Numbers Don’t Add Up Page: 287 You’re Getting #REF! Errors Page: 288 You Have Circular References Page: 288 The Model Has Too Much Detail Page: 290 The File Size Is Out of Control Page: 291 Your Model Is Full of “Spaghetti” Links Page: 293 The Formulas Are Unnecessarily Long and Complicated Page: 295 No One Is Paying Attention to the Model Page: 296 You Don’t Want to Let Go Page: 296 Someone Messes Up Your Model Page: 297 About the Author Page: 317 Advertisement Page Page: 319 Connect with Dummies Page: 324 End User License Agreement Page: 324

Description:
Make informed business decisions with the beginner's guide to financial modeling using Microsoft Excel

Financial Modeling in Excel For Dummies is your comprehensive guide to learning how to create informative, enlightening financial models today. Not a math whiz or an Excel power-user? No problem! All you need is a basic understanding of Excel to start building simple models with practical hands-on exercises. Before you know it, you’ll be modeling your way to optimized profits for your business in no time. Excel is powerful, user-friendly, and is most likely already installed on your computer--which is why it has so readily become the most popular financial modeling software. This book shows you how to harness Excel's capabilities to determine profitability, develop budgetary projections, model depreciation, project costs, value assets, and more. You'll learn the fundamental best practices and know-how of financial modeling, and how to put them to work for your business and your clients. You'll learn the tools and techniques that bring insight out of the numbers and make better business decisions based on quantitative evidence. You'll discover that financial modeling is an invaluable resource for your business, and you'll wonder why you've waited this long to learn how!

Companies around the world use financial modeling for decision making, to steer strategy, and to develop solutions. This book walks you through the process with clear, expert guidance that assumes little prior knowledge.

  • Learn the six crucial rules to follow when building a successful financial model
  • Discover how to review and edit an inherited financial model and align it with your business and financial strategy
  • Solve client problems, identify market projections, and develop business strategies based on scenario analysis
  • Create valuable customized templates models that can become a source of competitive advantage

From multinational corporations to the mom-and-pop corner store, there isn't a business around that wouldn't benefit from financial modeling. No need to buy expensive specialized software--the tools you need are right there in Excel. Financial Modeling in Excel For Dummies gets you up to speed quickly so you can start reaping the benefits today!

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