Financial Modeling in Excel

Complete syllabus

Every chapter and lesson

1. 01

   Chapter 1 · 3 lessons

   Model Foundations

   1. 1.1

      Modeling best practices

      9 min · Quick check

      Lesson goal: By the end you can identify and apply best practices in financial modeling.

      • Understand the importance of consistency in modeling practices.
      • Recognize common pitfalls in financial models.
      • Learn how to structure a model for clarity and usability.
      • Identify the role of documentation in financial models.
   2. 1.2

      Formatting & formula hygiene

      9 min · Quick check

      Lesson goal: By the end you can implement proper formatting and maintain formula hygiene in your models.

      • Define formatting standards for readability and professionalism.
      • Learn the significance of using clear and consistent formulas.
      • Understand how to avoid errors through proper formula management.
      • Explore techniques for effective cell referencing.
   3. 1.3

      Functions every modeler uses

      9 min · Quick check

      Lesson goal: By the end you can utilize essential functions that are commonly used in financial modeling.

      • Identify key functions such as SUM, AVERAGE, and IF.
      • Understand the applications of lookup functions like VLOOKUP and HLOOKUP.
      • Learn how to use logical functions to enhance model decision-making.
      • Explore the use of financial functions for calculations like NPV and IRR.
2. 02

   Chapter 2 · 3 lessons

   The Three Statements

   1. 2.1

      The income statement

      9 min · Quick check

      Lesson goal: By the end you can understand the components and purpose of the income statement.

      • Define the income statement and its role in financial reporting.
      • Identify the main components: revenues, expenses, and net income.
      • Explain how the income statement reflects a company's profitability over a specific period.
   2. 2.2

      The balance sheet

      9 min · Quick check

      Lesson goal: By the end you can describe the structure and significance of the balance sheet.

      • Define the balance sheet and its importance in assessing a company's financial position.
      • Identify the key components: assets, liabilities, and shareholders' equity.
      • Explain the accounting equation: Assets = Liabilities + Shareholders' Equity.
   3. 2.3

      The cash flow statement

      9 min · Quick check

      Lesson goal: By the end you can articulate the purpose and components of the cash flow statement.

      • Define the cash flow statement and its role in financial analysis.
      • Identify the three sections: operating, investing, and financing activities.
      • Explain how the cash flow statement provides insights into a company's liquidity and cash management.
3. 03

   Chapter 3 · 3 lessons

   Linking & Building the Model

   1. 3.1

      Linking the statements

      10 min · Quick check

      Lesson goal: By the end you can explain how to link financial statements in Excel.

      • Define financial statements and their components.
      • Identify the relationships between the income statement, balance sheet, and cash flow statement.
      • Demonstrate how to create links between these statements in Excel.
   2. 3.2

      Making it balance

      9 min · Quick check

      Lesson goal: By the end you can ensure that your financial model balances correctly.

      • Define what it means for a financial model to balance.
      • Identify common sources of imbalance in financial models.
      • Demonstrate techniques to check and correct imbalances in Excel.
   3. 3.3

      Supporting schedules

      9 min · Quick check

      Lesson goal: By the end you can create supporting schedules that enhance your financial model.

      • Define supporting schedules and their purpose in financial modeling.
      • Identify key components that require supporting schedules.
      • Demonstrate how to create and link supporting schedules in Excel.
4. 04

   Chapter 4 · 3 lessons

   Forecasting & Assumptions

   1. 4.1

      Driving assumptions

      9 min · Quick check

      Lesson goal: By the end you can identify and articulate the key driving assumptions in financial models.

      • Define what driving assumptions are in the context of financial modeling.
      • Explain the importance of accurate driving assumptions for reliable forecasts.
      • Identify common types of driving assumptions used in financial models.
   2. 4.2

      Scenarios & sensitivity

      9 min · Quick check

      Lesson goal: By the end you can analyze different scenarios and their sensitivity on financial outcomes.

      • Define scenarios and sensitivity analysis in financial modeling.
      • Explain how to create different scenarios based on varying assumptions.
      • Discuss the impact of sensitivity analysis on decision-making.
   3. 4.3

      Stress-testing the model

      9 min · Quick check

      Lesson goal: By the end you can perform stress-testing on your financial model to evaluate its robustness.

      • Define stress-testing and its relevance in financial modeling.
      • Explain the process of stress-testing a financial model.
      • Identify key variables to test under extreme conditions.
5. 05

   Chapter 5 · 3 lessons

   Valuation & Review

   1. 5.1

      Discounted cash flow (DCF)

      11 min · Quick check

      Lesson goal: By the end you can explain the concept of Discounted Cash Flow (DCF) and its application in valuation.

      • Define Discounted Cash Flow (DCF) and its significance in financial modeling.
      • Explain the components of DCF, including cash flows, discount rate, and terminal value.
      • Discuss the process of calculating DCF and its relevance in investment decisions.
   2. 5.2

      Comparables & sanity checks

      9 min · Quick check

      Lesson goal: By the end you can utilize comparables and sanity checks to validate financial models.

      • Define comparables and their role in valuation.
      • Identify different types of comparables used in financial analysis.
      • Explain how to perform sanity checks to ensure the model's accuracy and reliability.
   3. 5.3

      Auditing & presenting the model

      9 min · Quick check

      Lesson goal: By the end you can effectively audit and present a financial model to stakeholders.

      • Define auditing in the context of financial modeling and its importance.
      • Discuss best practices for presenting financial models to ensure clarity and understanding.
      • Explain the key elements to review when auditing a financial model.