Hands-On Financial Modeling with Microsoft Excel 2019 Book Summary - Hands-On Financial Modeling with Microsoft Excel 2019 Book explained in key points

Hands-On Financial Modeling with Microsoft Excel 2019 summary

Shmuel Oluwa

Brief summary

Hands-On Financial Modeling with Microsoft Excel 2019 equips you with the essential skills and knowledge needed to build and analyze financial models in Excel. Learn practical techniques and best practices to enhance your financial modeling proficiency.

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    Hands-On Financial Modeling with Microsoft Excel 2019
    Summary of key ideas

    Introduction to Financial Modeling and Excel

    In the book Hands-On Financial Modeling with Microsoft Excel 2019, we begin with an introduction to financial modeling and Excel. We explore the importance of financial modeling in decision-making processes and the role of Excel as a powerful tool for financial modeling. We also discuss the key features of Excel 2019 that are relevant to financial modeling.

    We then move on to understanding the steps involved in building a financial model. We discuss the importance of planning and structuring the model, gathering data, and setting up the model in Excel. We also explore the best practices for organizing and documenting the model to ensure clarity and transparency.

    Formulas and Functions for Financial Modeling

    In the next section, we delve into the core of financial modeling - formulas and functions. We explore the various financial functions available in Excel and how they can be used to perform common financial calculations such as present value, future value, and net present value. We also discuss the use of logical and lookup functions in financial modeling.

    Furthermore, we learn about the power of Excel's array formulas and how they can be used to perform complex calculations efficiently. We also explore the use of data tables and scenarios to perform sensitivity analysis and scenario planning in financial models.

    Building Assumptions and Projections

    After mastering the use of formulas and functions, we move on to understanding the process of building assumptions and projections in financial models. We discuss the importance of understanding the business context and using historical data to make informed assumptions about future performance. We also explore different methods for projecting income statements, balance sheets, and cash flow statements.

    Additionally, we learn about the concept of circular references and how to handle them in financial models. We also discuss the use of Excel's Goal Seek and Solver tools to optimize model outputs based on specific constraints.

    Advanced Financial Modeling Techniques

    In the subsequent section, we explore advanced financial modeling techniques. We discuss the construction of detailed asset and debt schedules, which are essential components of many financial models. We also delve into the concept of scenario analysis and learn how to build dynamic, flexible models that can accommodate different business scenarios.

    Furthermore, we explore the use of Monte Carlo simulation in financial modeling. We discuss how Monte Carlo simulation can be used to assess the impact of uncertainty and risk on financial outcomes, making our models more robust and insightful.

    Model Testing and Validation

    In the final part of the book, we focus on model testing and validation. We discuss the importance of testing the model for accuracy and reasonableness. We explore various techniques for model testing, including stress testing, sensitivity analysis, and back-testing.

    Finally, we learn about the best practices for documenting and presenting financial models. We discuss the importance of clear, transparent model documentation and effective model presentation to ensure that the model outputs are easily understandable and actionable.

    In conclusion, Hands-On Financial Modeling with Microsoft Excel 2019 provides a comprehensive guide to building effective financial models using Excel. By mastering the concepts and techniques presented in this book, readers will be well-equipped to create robust, reliable financial models that can support informed decision-making in various business contexts.

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    What is Hands-On Financial Modeling with Microsoft Excel 2019 about?

    Hands-On Financial Modeling with Microsoft Excel 2019 by Shmuel Oluwa is a comprehensive guide that teaches you how to create financial models using Excel. It covers topics such as forecasting, valuation, and scenario analysis, providing practical examples and step-by-step instructions. Whether you're a finance professional or a student, this book will help you master the art of financial modeling.

    Hands-On Financial Modeling with Microsoft Excel 2019 Review

    Hands-On Financial Modeling with Microsoft Excel 2019 (2020) is a comprehensive book that teaches readers how to use Excel to create financial models. Here's why this book is worth reading:

    • Provides practical examples and step-by-step instructions that enable readers to master financial modeling in Excel.
    • Combines theoretical concepts with hands-on exercises, ensuring a deep understanding of financial modeling techniques.
    • Offers real-world applications of financial modeling, making it engaging and relevant for both beginners and experienced professionals.

    Who should read Hands-On Financial Modeling with Microsoft Excel 2019?

    • Individuals who want to learn how to effectively build and analyze financial models using Excel
    • Professionals working in finance, investment banking, or corporate finance
    • Students pursuing a degree in finance or accounting

    About the Author

    Shmuel Oluwa is a financial analyst and author with a passion for teaching others about the world of finance. With a background in investment banking and corporate finance, Oluwa has extensive experience in building complex financial models. He has written several books on financial modeling and Excel, including 'Mastering Financial Modeling with Microsoft Excel' and 'Advanced Excel for Financial Modeling'. Oluwa's practical approach and clear explanations make his books valuable resources for both beginners and experienced professionals in the field of finance.

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    Hands-On Financial Modeling with Microsoft Excel 2019 FAQs 

    What is the main message of Hands-On Financial Modeling with Microsoft Excel 2019?

    The main message of Hands-On Financial Modeling with Microsoft Excel 2019 is to help readers effectively use Excel for financial modeling.

    How long does it take to read Hands-On Financial Modeling with Microsoft Excel 2019?

    The reading time for Hands-On Financial Modeling with Microsoft Excel 2019 varies, but it typically takes several hours. The Blinkist summary can be read in just 15 minutes.

    Is Hands-On Financial Modeling with Microsoft Excel 2019 a good book? Is it worth reading?

    Hands-On Financial Modeling with Microsoft Excel 2019 is a valuable book for anyone seeking to enhance their financial modeling skills. It offers practical guidance and insights.

    Who is the author of Hands-On Financial Modeling with Microsoft Excel 2019?

    The author of Hands-On Financial Modeling with Microsoft Excel 2019 is Shmuel Oluwa.

    What to read after Hands-On Financial Modeling with Microsoft Excel 2019?

    If you're wondering what to read next after Hands-On Financial Modeling with Microsoft Excel 2019, here are some recommendations we suggest:
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    • Rich Dad, Poor Dad by Robert T. Kiyosaki
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    • The Richest Man in Babylon by George S. Clason