Using Excel for business and financial modelling : a practical guide / Danielle Stein Fairhurst.

Revised edition of the author's Using Excel for business analysis, 2012.

Includes index.

"A hands-on guide to using Excel in the business context First published in 2012, Using Excel for Business and Financial Modelling contains step-by-step instructions of how to solve common business problems using financial models, including downloadable Excel templates, a list of shortcuts and tons of practical tips and techniques you can apply straight away. Whilst there are many hundreds of tools, features and functions in Excel, this book focuses on the topics most relevant to finance professionals. It covers these features in detail from a practical perspective, but also puts them in context by applying them to practical examples in the real world. Learn to create financial models to help make business decisions whilst applying modelling best practice methodology, tools and techniques. Provides the perfect mix of practice and theory Helps you become a DIY Excel modelling specialist Includes updates for Excel 2019/365 and Excel for Mac May be used as an accompaniment to the authors online and face-to-face training courses Many people are often overwhelmed by the hundreds of tools in Excel, and this book gives clarity to the ones you need to know in order to perform your job more efficiently. This book also demystifies the technical, design, logic and financial skills you need for business and financial modelling"-- Provided by publisher.

"The book is a very hands-on guide to the use of Excel in a business context. First published in 2012, it contains step-by-step instructions of how to solve common business problems using financial models, including downloadable Excel templates as well as other supplementary content; a list of shortcuts and jam-packed with practical tips and techniques the reader can pick up and apply straight away to their work. Readers purchase the book for their own learning and it is also used as an accompaniment to the author's online and face to face training courses. Whilst there are many hundreds of tools, features and functions in Excel, this book focusses more on topics relevant to finance professionals. It covers these features in detail from a practical perspective, but also puts them in context by applying them to practical examples in the real world. Readers are often overwhelmed by the hundreds of tools in Excel and this book gives them clarity by showing them only the ones that they really need to know in order to perform their job more efficiently"-- Provided by publisher.

Machine generated contents note: Chapter 1: What is Financial Modelling? What's the Difference Between a Spreadsheet and a Financial Model? Types and Purposes of Financial Models Tool Selection What Skills Do You Need to Be a Good Financial Modeller? The "Ideal" Financial Modeller Summary Chapter 2: Building a Model Model Design The Golden Rules for Product Design Design Issues The Workbook Anatomy of a Model Project Planning Your Model Model Layout Flowcharting Steps to Building a Model Information Requests Version-Control Documentation Summary Chapter 3: Best-Practice Principles of Modelling Document Your Assumptions Linking, Not Hardcoding Enter Data Only Once Avoid Bad Habits Use Consistent Formulas Format and Label Clearly Methods and Tools of Assumptions Documentation Linked Dynamic Text Assumptions Documentation What Makes a Good Model? Summary Chapter 4: Financial Modelling Techniques The Problem with Excel Error Avoidance Strategies How Long Should a Formula Be? Linking to External Files Building Error Checks Circular References Summary Chapter 5: Using Excel in Financial Modelling Formulas and Functions in Excel Excel Versions Handy Excel Shortcuts Cell Referencing Best Practices Named Ranges Basic Excel Functions Logical Functions Nesting Logical Functions Summary Chapter 6: Functions for Financial Modelling Aggregation Functions LOOKUP Functions Nesting Index and Matching OFFSET Function Regression Analysis Choose Function Working with Dates Financial Project Evaluation Functions Loan Calculations Summary Chapter 7: Tools for Model Display Basic Formatting Custom Formatting Conditional Formatting Sparklines Bulletproofing Your Model Customising the Display Settings Form Controls Summary Chapter 8: Tools for Financial Modelling Hiding Sections of a Model Array Formulas Goal Seeking Structured Reference Tables PivotTables Macros Summary Chapter 9: Common Uses of Tools in Financial Modelling Escalation Methods for Modelling Understanding Nominal and Effective (Real) Rates Calculating a Cumulative Sum (Running Totals) How to Calculate a Payback Period Weighted Average Cost of Capital (WACC) Building a Tiering Table Modelling Depreciation Methods Break-Even Analysis Summary Chapter 10: Model Review Rebuilding an Inherited Model Improving Model Performance Auditing a Financial Model Summary Appendix: QA Log Chapter 11: Stress Testing, Scenarios, and Sensitivity Analysis in Financial Modelling What are the Differences Between Scenario, Sensitivity, and What-If Analyses? Overview of Scenario Analysis Tools and Methods Advanced Conditional Formatting Comparing Scenario Methods Adding Probability to a Data Table Summary Chapter 12: Presenting Model Output Preparing an Oral Presentation for Model Results Preparing a Graphic or Written Presentation for Model Results Chart Types Working with Charts Handy Charting Hints Dynamic Named Ranges Charting with Two Different Axes and Chart Types Bubble Charts Creating a Dynamic Chart Waterfall Charts Summary Index.

Cover; Title Page; Copyright; Contents; Preface; Book Overview; Acknowledgements; Chapter 1 What is Financial Modelling?; What's the Difference Between a Spreadsheet and a Financial Model?; Types and Purposes of Financial Models; Tool Selection; Is Excel Really the Best Option?; Evaluating Modelling Tools; 32-Bit versus 64-Bit Microsoft Excel; What Skills do You Need to be a Good Financial Modeller?; Spreadsheet and Technical Excel Skills; Industry Knowledge; Accounting Knowledge; Business Knowledge; Aesthetic Design Skills; Communication and Language Skills; Numeracy Skills

Ability to Think LogicallyThe "Ideal" Financial Modeller; What's the Typical Background for a Financial Modeller?; Training Courses; Summary; Chapter 2 Building a Model; Model Design; Practical Example 1: Assumptions Layout; Practical Example 2: Summary Categorisation; The Golden Rules for Model Design; Separate Inputs, Calculations, and Results, where Possible; Use Each Column for the Same Purpose; Use One Formula per Row or Column; Refer to the Left and Above; Use Multiple Worksheets; Include Documentation Sheets; Design Issues; The Workbook Anatomy of a Model; Workbook Anatomy Issues

Project Planning Your ModelHow Long Does it Take to Build a Financial Model?; Building a Model Under Pressure; Model Layout Flowcharting; Practical Exercise: Model Design Customer Support Pricing Model; Steps to Building a Model; The Streamlined Version; The Team Version; Information Requests; Version-Control Documentation; File Structure; Summary; Chapter 3 Best-Practice Principles of Modelling; Document Your Assumptions; Linking, Not Hardcoding; Enter Data Only Once; Avoid Bad Habits; Use Consistent Formulas; Format and Label Clearly; Methods and Tools of Assumptions Documentation

In-Cell Comments"Red Triangle" Comments; Footnoting; Hyperlinks; Hardcoded Text; Linked Dynamic Text Assumptions Documentation; Practical Exercise 1; Practical Exercise 2; Practical Exercise 3; What Makes a Good Model?; Standards in Financial Modelling; Summary; Chapter 4 Financial Modelling Techniques; The Problem With Excel; Error Avoidance Strategies; Avoiding Simple Formula Errors; How Long Should a Formula Be?; Linking to External Files; Why You Should Use Named Ranges in External Links; Dealing with Links and the Potential Errors They Can Cause; Building Error Checks

Error-Check ExerciseAllowing Tolerance for Error; Error-Check Alerts; Avoid Error Displays in Formulas; Circular References; How to Fix Circular References; Circular References in Interest Calculations; Enabling Iterative Calculations; Summary; Chapter 5 Using Excel in Financial Modelling; Formulas and Functions in Excel; Choose the Simplest Solution; Excel Versions; What is the Difference Between a Perpetual and a Subscription-Based Licence?; Excel Version Compatibility; Handy Excel Shortcuts; Windows Shortcuts; Mac Shortcuts; Cell Referencing Best Practices