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Financial Modeling in Excel For Dummies (For Dummies
Make informed business decisions with the beginner's guide to financial modeling using Microsoft Excel Financial Modeling in Excel For Dummies is your comprehensive guide to learning how to create informative, enlightening financial models today. Not a math whiz or an Excel power-user? No problem! All you need is a basic understanding of Excel to start building simple models with practical hands-on exercises and before you know it, you'll be modeling your way to optimized profits for your business in no time. Excel is powerful, user-friendly, and is most likely already installed on your computer—which is why it has so readily become the most popular financial modeling software. This book shows you how to harness Excel's capabilities to determine profitability, develop budgetary projections, model depreciation, project costs, value assets and more. You'll learn the fundamental best practices and know-how of financial modeling, and how to put them to work for your business and your clients. You'll learn the tools and techniques that bring insight out of the numbers, and make better business decisions based on quantitative evidence. You'll discover that financial modeling is an invaluable resource for your business, and you'll wonder why you've waited this long to learn how! Companies around the world use financial modeling for decision making, to steer strategy, and to develop solutions. This book walks you through the process with clear, expert guidance that assumes little prior knowledge. Create valuable customized templates models that can become a source of competitive advantage From multinational corporations to the mom-and-pop corner store, there isn't a business around that wouldn't benefit from financial modeling. No need to buy expensive specialized software—the tools you need are right there in Excel. Financial Modeling in Excel For Dummies gets you up to speed quickly so you can start reaping the benefits today!
336 pages, Kindle Edition
First published April 1, 2017
74 people are currently reading
126 people want to read
About the author
Danielle Stein Fairhurst
9 books5 followersDanielle Stein Fairhurst is the principal of Plum Solutions, a Sydney-based financial modelling consultancy. With her talent for analytical modelling and professional approach, Danielle helps her clients create meaningful financial models for business analysis. She is regularly engaged as a speaker, facilitator and consultant. She holds a Master of Business Administration (MBA) from Macquarie Graduate School of Management, and has taught management accounting subjects at Sydney University.
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Displaying 1 - 7 of 7 reviews
December 1, 2017
Hasznos könyv rengeteg bestprektisszel.
July 27, 2022
This is a book about how to best use Excel to make financial models (a concept you should already know to some extent before picking up this book). My take on this book's difficulty level (scale 1-5) is: technically 1 (if you have ever seen Excel, you're good to go), financially 2-3 (you know what a budget and P&L statement is). Overall, this book is very basic - it goes into great depth, but stays with rather simple models (both technically and financially).
What I appreciated in this book:
- Very clear explanations - there's just no way any point could slip you by.
- It teaches very sound practices. As a programmer I know how important it is to keep formulas and structure clean. There are lots of great advice here, which will surely save you many mistakes.
- The focus is on the things that will give you the most reward for your efforts. You get to thoroughly learn 10 or so of the functions that a modeler will derive the most benefit from, and the same for features in Excel. You won't get stuck with micro-optimizations, but will clearly remember the most important things.
Just a few drawbacks:
- Some cell references in the practice cases were off by one row or so.
- It can be tiring to read instructions such as "entering the formula =HLOOKUP('IS Cash Flow'!$B$1, $B$2:$D$4, 4, 0)". When working in Excel, you have to get used to some of that, but reading it on paper (in black and white) can be a bit tiring. I suggest you read these passages slowly and thoroughly think about what it means - that can be a good practice.
In summary: A good book to make you more efficient and professional in working with Excel overall.
What I appreciated in this book:
- Very clear explanations - there's just no way any point could slip you by.
- It teaches very sound practices. As a programmer I know how important it is to keep formulas and structure clean. There are lots of great advice here, which will surely save you many mistakes.
- The focus is on the things that will give you the most reward for your efforts. You get to thoroughly learn 10 or so of the functions that a modeler will derive the most benefit from, and the same for features in Excel. You won't get stuck with micro-optimizations, but will clearly remember the most important things.
Just a few drawbacks:
- Some cell references in the practice cases were off by one row or so.
- It can be tiring to read instructions such as "entering the formula =HLOOKUP('IS Cash Flow'!$B$1, $B$2:$D$4, 4, 0)". When working in Excel, you have to get used to some of that, but reading it on paper (in black and white) can be a bit tiring. I suggest you read these passages slowly and thoroughly think about what it means - that can be a good practice.
In summary: A good book to make you more efficient and professional in working with Excel overall.
September 1, 2023
This is a review for the first edition of this book.
Financial Modeling for Dummies is divided in 4 parts:
1. Getting started with F. M.
2. Diving deep into Excel
3. Building your F. M.
4. The part of tens
The first part is an introduction of sorts where some background about financial models is given, the importance of following certain good practices stressed and the main steps to follow when building a model. The second part is an overview of the main tools Excel offers (in terms of functions, formatting, charting, error handling, etc.) to financial modellers. In this second part, the read can start making use of the sample spreadsheet provided by the author/editor on the book's website to perform exercises. It's only in the third part the reader will get a chance of building a financial model from the ground up, but even that, the starting point will be some already made templates by the author. Lastly, the part of tens contains two chapters with advice and tips on how to avoid the most common pitfalls when building financial models in Excel.
I really wanted to like this book, but after finishing it, I'm not sure who the target audience is. I have a background in IT myself, not in finance, and while I'm by no means an expert in Excel, I found the second part of the book quite uninteresting. Likewise, I say this because it covers many basic subjects about Excel. Sure enough, there are quite a few shortcuts I was not aware of, and I thought they were handy to learn. However, by the time you're half-way through the book, you haven't got a chance of building a financial model yet.
Furthermore, the third part, which is supposed to be the one you'll build a model... has a chapter about adding discounted cash flows calculations that for me, not being an accountant, was really hard to follow. I was doing the exercises, but it felt more like typing in formulas into cells without knowing why and, more importantly, the meaning of those calculations.
The book is good at explaining the basics of how to organize your spreadsheet for building a model. But perhaps it lacks on explaining a bit more the financial theory behind some calculations.
Financial Modeling for Dummies is divided in 4 parts:
1. Getting started with F. M.
2. Diving deep into Excel
3. Building your F. M.
4. The part of tens
The first part is an introduction of sorts where some background about financial models is given, the importance of following certain good practices stressed and the main steps to follow when building a model. The second part is an overview of the main tools Excel offers (in terms of functions, formatting, charting, error handling, etc.) to financial modellers. In this second part, the read can start making use of the sample spreadsheet provided by the author/editor on the book's website to perform exercises. It's only in the third part the reader will get a chance of building a financial model from the ground up, but even that, the starting point will be some already made templates by the author. Lastly, the part of tens contains two chapters with advice and tips on how to avoid the most common pitfalls when building financial models in Excel.
I really wanted to like this book, but after finishing it, I'm not sure who the target audience is. I have a background in IT myself, not in finance, and while I'm by no means an expert in Excel, I found the second part of the book quite uninteresting. Likewise, I say this because it covers many basic subjects about Excel. Sure enough, there are quite a few shortcuts I was not aware of, and I thought they were handy to learn. However, by the time you're half-way through the book, you haven't got a chance of building a financial model yet.
Furthermore, the third part, which is supposed to be the one you'll build a model... has a chapter about adding discounted cash flows calculations that for me, not being an accountant, was really hard to follow. I was doing the exercises, but it felt more like typing in formulas into cells without knowing why and, more importantly, the meaning of those calculations.
The book is good at explaining the basics of how to organize your spreadsheet for building a model. But perhaps it lacks on explaining a bit more the financial theory behind some calculations.
June 18, 2017
I received a free copy of this book to review.
This book is a great introduction to Financial Modeling. The content is easy to follow and gets you started on the right foot with lots of best practice advice.
I would have given the book five stars except the screen shots tend to include the whole screen rather than zoom in on the important part of the screen - many images are hard to read.
The book is a great primer for Danielle's first book which allows you to learn even more about financial modeling.
This book is a great introduction to Financial Modeling. The content is easy to follow and gets you started on the right foot with lots of best practice advice.
I would have given the book five stars except the screen shots tend to include the whole screen rather than zoom in on the important part of the screen - many images are hard to read.
The book is a great primer for Danielle's first book which allows you to learn even more about financial modeling.
September 6, 2022
Finance
This was an extremely helpful book.
I have been doing some modeling on the economy and this was a super helpful book to get me into the headspace (along with some other books I have read recently).
Would recommend!
4.2/5
This was an extremely helpful book.
I have been doing some modeling on the economy and this was a super helpful book to get me into the headspace (along with some other books I have read recently).
Would recommend!
4.2/5
August 17, 2023
This is a very good introductory book on the processes and tools needed to build out financial models in Excel. It's designed to be a ready-made resource should technical questions arise while building out a model.
January 17, 2022
Easy to read and understand
Yes I would buy it again as a reference book
Yes I would buy it again as a reference book
Displaying 1 - 7 of 7 reviews