Excel Modeling Tips and Tricks
1h 52mIntermediate2024-10-10
Authors
Michael McDonald
Researcher and Professor of Finance at Fairfield University
Course details
Excel is a great tool for building financial and operational models, allowing users to understand what may happen in the future and how a business can position itself. In this course, learn to build effective and useful financial models in Excel to forecast sales and costs, profits, operational KPIs, business assets and liabilities, and much more. Instructor Michael McDonald covers rules and best practices for financial modeling and then shows how to set up single-sheet and multi-sheet financial models and add inputs and assumptions, external data, projections, and more. Michael introduces Microsoft Copilot and explains how its AI features can enhance the process of building models in Excel. Check out this course to gain the tools and tricks to become a master of Excel modeling.
Learning objectives
Describe the basic structure of a financial model and identify its three main parts: inputs, calculations, and outputs.
Explain the process of creating a basic loan amortization model and describe the key steps involved.
Compare different methods for linking multi-sheet financial models and explore best practices for maintaining model integrity.
Evaluate financial model accuracy by performing stress tests and explain the significance of these tests.
Create dynamic financial models using if/then analysis and identify scenarios where toggles and inputs can enhance decision-making.
Learning objectives
Describe the basic structure of a financial model and identify its three main parts: inputs, calculations, and outputs.
Explain the process of creating a basic loan amortization model and describe the key steps involved.
Compare different methods for linking multi-sheet financial models and explore best practices for maintaining model integrity.
Evaluate financial model accuracy by performing stress tests and explain the significance of these tests.
Create dynamic financial models using if/then analysis and identify scenarios where toggles and inputs can enhance decision-making.
Skills covered
Tips, Tricks, & TechniquesSpreadsheetsMicrosoft ExcelBusiness Software and ToolsMicrosoft
Concepts
Introduction
- Getting started with Excel modeling
Financial Modeling - Reviewing the Basics
- Objectives in financial modeling
- Rules and best practices
- Assessing a financial model
- Copilot, AI, and Excel
Single-Sheet Financial Models
- Doing a basic loan amortization model
- Thinking through the model structure
- The three parts of Excel models
- Adding toggles and inputs to a model
- Using if then analysis in models
- Making assumptions in financial models
- Steps in building the single-sheet model
Multi-Sheet Financial Models
- Setting up a multi-sheet financial model
- Linking sheets in financial models
- Steps in building the multi-sheet model
- Notating and comments in models
- Historical data in financial models
- External data in financial models
- Projections in financial models
Assessing Model Accuracy
- Determining model accuracy
- Stress testing models
- Using financial models
- Linking Excel results to PowerPoint
- Maintaining your models
Conclusion
- Continuing to build Excel models