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Using Excel for Business Analysis: A Guide to Financial Modelling Fundamentals, + Website

Book Description

A clear, concise, and easy-to-use guide to financial modelling suitable for practitioners at every level

Using a fundamental approach to financial modelling that's accessible to both new and experienced professionals, Using Excel for Business Analysis: A Guide to Financial Modelling Fundamentals + Website offers practical guidance for anyone looking to build financial models for business proposals, to evaluate opportunities, or to craft financial reports. Comprehensive in nature, the book covers the principles and best practices of financial modelling, including the Excel tools, formulas, and functions to master, and the techniques and strategies necessary to eliminate errors.

As well as explaining the essentials of financial modelling, Using Excel for Business Analysis is packed with exercises and case studies to help you practice and test your comprehension, and includes additional resources online.

  • Provides comprehensive coverage of the principles and best practices of financial modeling, including planning, how to structure a model, layout, the anatomy of a good model, rebuilding an inherited model, and much more

  • Demonstrates the technical Excel tools and techniques needed to build a good model successfully

  • Outlines the skills you need to learn in order to be a good financial modeller, such as technical, design, and business and industry knowledge

  • Illustrates successful best practice modeling techniques such as linking, formula consistency, formatting, and labeling

  • Describes strategies for reducing errors and how to build error checks and other methods to ensure accurate and robust models

A practical guide for professionals, including those who do not come from a financial background, Using Excel for Business Analysis is a fundamentals-rich approach to financial modeling.

Table of Contents

  1. Cover
  2. Contents
  3. Title
  4. Copyright
  5. Dedication
  6. Preface
  7. Chapter 1: What is Financial Modelling?
    1. What’s the Difference between a Spreadsheet and a Financial Model?
    2. Types and Purposes of Financial Models
    3. Tool Selection
    4. What Skills Do you Need to Be a Good Financial Modeller?
    5. The Ideal Financial Modeller
    6. Summary
  8. Chapter 2: Building a Model
    1. Model Design
    2. The Golden Rules for Model Design
    3. Design Issues
    4. The Workbook Anatomy of a Model
    5. Project Planning Your Model
    6. Model Layout Flow Charting
    7. Steps to Building a Model
    8. Information Requests
    9. Version-Control Documentation
    10. Summary
  9. Chapter 3: Best Practice Principles of Modelling
    1. Document Your Assumptions
    2. Linking, Not Hard Coding
    3. Only Enter Data Once
    4. Avoid Bad Habits
    5. Use Consistent Formulas
    6. Format and Label Clearly
    7. Methods and Tools of Assumptions Documentation
    8. Linked Dynamic Text Assumptions Documentation
    9. What Makes a Good Model?
    10. Summary
  10. Chapter 4: Financial Modelling Techniques
    1. The Problem with Excel
    2. Error Avoidance Strategies
    3. How Long Should a Formula Be?
    4. Linking to External Files
    5. Building Error Checks
    6. Avoid Error Displays in Formulas
    7. Circular References
    8. Summary
  11. Chapter 5: Using Excel in Financial Modelling
    1. Formulas and Functions in Excel
    2. Excel Versions
    3. Handy Excel Shortcuts
    4. Basic Excel Functions
    5. Logical Functions
    6. Nesting: Combining Simple Functions to Create Complex Formulas
    7. Cell Referencing Best Practices
    8. Named Ranges
    9. Summary
  12. Chapter 6: Functions for Financial Modelling
    1. Aggregation Functions
    2. LOOKUP Formulas
    3. Other Useful Functions
    4. Working with Dates
    5. Financial Project Evaluation Functions
    6. Loan Calculations
    7. Summary
  13. Chapter 7: Tools for Model Display
    1. Basic Formatting
    2. Custom Formatting
    3. Conditional Formatting
    4. Sparklines
    5. Bulletproofing Your Model
    6. Customising the Display Settings
    7. Form Controls
    8. Summary
  14. Chapter 8: Tools for Financial Modelling
    1. Hiding Sections of a Model
    2. Grouping
    3. Array Formulas
    4. Goal Seeking
    5. Pivot Tables
    6. Macros
    7. User-Defined Functions (UDFs)
    8. Summary
  15. Chapter 9: Common Uses of Tools in Financial Modelling
    1. Escalation Methods for Modelling
    2. Understanding Nominal and Effective (Real) Rates
    3. Calculating Cumulative Totals
    4. How to Calculate a Payback Period
    5. Weighted Average Cost of Capital (WACC)
    6. Building a Tiering Table
    7. Modelling Depreciation Methods
    8. Break-Even Analysis
    9. Summary
  16. Chapter 10: Model Review
    1. Rebuilding an Inherited Model
    2. Auditing a Financial Model
    3. Appendix 10.1: QA Log
    4. Summary
  17. Chapter 11: Stress-Testing, Scenarios, and Sensitivity Analysis in Financial Modelling
    1. What’s the Difference between Scenario, Sensitivity, and What-If Analysis?
    2. Overview of Scenario Analysis Tools and Methods
    3. Advanced Conditional Formatting
    4. Comparing Scenario Methods
    5. Summary
  18. Chapter 12: Presenting Model Output
    1. Preparing an Oral Presentation for Model Results
    2. Preparing a Graphic or Written Presentation for Model Results
    3. Chart Types
    4. Working with Charts
    5. Handy Charting Hints
    6. Dynamic Range Names
    7. Charting with Two Different Axes and Chart Types
    8. Bubble Charts
    9. Waterfall Charts
    10. Summary
  19. About the Author
  20. About the Website
  21. Index