Key Features

Explore Excel's financial functions and pivot tables with this updated second edition

Build an integrated financial model with Excel for Microsoft 365 from scratch

Perform financial analysis with the help of real-world use cases

Book Description

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.

What you will learn

Identify the growth drivers derived from processing historical data in Excel

Use discounted cash flow (DCF) for efficient investment analysis

Prepare detailed asset and debt schedule models in Excel

Calculate profitability ratios using various profit parameters

Obtain and transform data using Power Query

Dive into capital budgeting techniques

Apply a Monte Carlo simulation to derive key assumptions for your financial model

Build a financial model by projecting balance sheets and profit and loss

Who this book is for

This book is for data professionals, analysts, traders, business owners, and students who want to develop and implement in-demand financial modeling skills in their finance, analysis, trading, and valuation work. Even if you don't have any experience in data and statistics, this book will help you get started with building financial models. Working knowledge of Excel is a prerequisite.