Financial Modeling in Excel For Dummies

✍ Scribed by Danielle Stein Fairhurst

• Publisher: Wiley
• Year: 2024
• Tongue: English
• Leaves: 333
• Edition: 2
• Category: Library

✦ Synopsis

Turn your financial data into insightful decisions with this straightforward guide to financial modeling with Excel 

Interested in learning how to build practical financial models and forecasts but concerned that you don't have the math skills or technical know-how? We've got you covered! Financial decision-making has never been easier than with Financial Modeling in Excel For Dummies. Whether you work at a mom-and-pop retail store or a multinational corporation, you can learn how to build budgets, project your profits into the future, model capital depreciation, value your assets, and more. 

You'll learn by doing as this book walks you through practical, hands-on exercises to help you build powerful models using just a regular version of Excel, which you've probably already got on your PC. You'll also: 

Master the tools and strategies that help you draw insights from numbers and data you've already got 

Build a successful financial...

✦ Table of Contents

Cover
Title Page
Copyright
Table of Contents
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1: Getting Started with Financial Modeling
Chapter 1: Introducing Financial Modeling
Defining Financial Modeling
Looking at Examples of Financial Models
Chapter 2: Getting Acquainted with Excel
Making Sense of the Different Versions of Excel
Defining Modern Excel
Recognizing the Dangers of Using Excel
Looking at Alternatives and Supplements to Excel
Chapter 3: Planning and Designing Your Financial Model
Identifying the Problem That Your Financial Model Needs to Solve
Designing How the Problem’s Answer Will Look
Gathering Data to Put in Your Model
Documenting the Limitations of Your Model
Considering the Layout and Design of Your Model
Chapter 4: Building a Financial Model by the Rulebook
Document Your Assumptions
Create Dynamic Formulas Using Links
Only Enter Data Once
Model with Consistent Formulas
Build in Error Checks
Format and Label for Clarity
Chapter 5: Using Someone Else’s Financial Model
Considering Templates for Building a Financial Model
Inheriting a File: What to Check For
Using Audit Tools to Find and Correct Errors
Sharing and Version Control
Part 2: Diving Deep into Excel
Chapter 6: Excel Tools and Techniques for Financial Modeling
Referencing Cells
Naming Ranges
Dynamic Ranges
Linking in Excel
Using Shortcuts
Restricting and Validating Data
Goal Seeking
Chapter 7: Using Functions in Excel
Identifying the Difference between a Formula and a Function
Finding the Function You Need
Getting Familiar with the Most Important Functions
Being Aware of Advanced Functions and Functionality
Chapter 8: Applying Scenarios to Your Financial Model
Identifying the Differences among Types of Analysis
Building Drop-Down Scenarios
Applying Sensitivity Analysis with Data Tables
Using Scenario Manager to Model Loan Calculations
Chapter 9: Charting and Presenting Model Output
Deciding Which Data to Display
Conveying Your Message by Charting Scenarios
Deciding Which Type of Chart to Use
Dynamic Charting
Preparing a Presentation
Part 3: Building Your Financial Model
Chapter 10: Building an Integrated Financial Statements Model
Getting to Know the Case Study
Entering Assumptions
Calculating Revenue
Calculating Expenses
Building the Income Statement
Building the Cash Flow Statement
Building the Balance Sheet
Building Scenarios
Chapter 11: Building a Discounted Cash Flow Valuation
Understanding How the Discounted Cash Flow Valuation Works
Step 1: Calculating Free Cash Flow to Firm
Step 2: Calculating Weighted Average Cost of Capital
Step 3: Finding the Terminal Value
Discounting Cash Flows and Valuation
Chapter 12: Budgeting for Capital Expenditure and Depreciation
Getting Started
Output 1: Calculating Cash Required for Budgeted Asset Purchases
Output 2: Calculating Budgeted Depreciation
Output 3: Calculating the Written-Down Value of Assets for the Balance Sheet
Part 4: The Part of Tens
Chapter 13: Ten Strategies for Reducing Error
Using the Enter Key
Checking Your Work
Checking It Again
Getting Someone Else to Check Your Work
Documenting Assumptions
Documenting Methodology with a Flowchart
Stress-Testing with Sensitivity Analysis
Conducting a Scenario Analysis
Taking Note of Excel Error Values
Including Error Checks
Chapter 14: Ten Common Pitfalls to Avoid
The Numbers Don’t Add Up
You’re Getting #REF! Errors
You Have Circular References
The Model Has Too Much Detail
The File Size Is Out of Control
Your Model Is Full of “Spaghetti” Links
The Formulas Are Unnecessarily Long and Complicated
No One Is Paying Attention to the Model
You Don’t Want to Let Go
Someone Messes Up Your Model
Index
About the Author
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End User License Agreement