Financial modeling is essential for determining a company's current value and projecting its future performance, yet few books explain how to build models for accurately interpreting financial statements. Building Financial Models is the first book to correct this oversight, unveiling a step-by-step process for creating a core model and then customizing it for companies in virtually any industry. Covering every aspect of building a financial model, it provides a broad understanding of the actual mechanics of models, as well as their foundational accounting and finance concepts.



Table of Contents

Introduction

Chapter 1: A projection model

Chapter 2: Design principles for good modeling

Chapter 3: Starting out

Chapter 4: Your model-building toolbox: F keys and ranges

Chapter 5: Your model-building toolbox: Functions

Chapter 6: Guerilla accounting for modeling

Chapter 7: Balancing the balance sheet

Chapter 8: Income statement and balance sheet accounts

Chapter 9: Putting everything together

Chapter 10: The IS and BS output sheets

Chapter 11: The CF sheet

Chapter 12: Ratios: Key performance indicators

Chapter 13: Forecasting guidelines

Chapter 14: The cash sweep

Chapter 15: The cash flow variation for cash sweep

Chapter 16: Recording macros

Chapter 17: On-screen controls

Chapter 18: Bells and whistles

Chapter 19: Writing a macro in VBA