Financial Forecasting, Analysis and Modelling: A Framework for Long-Term Forecasting

Table of Contents

Preface

Acknowledgments

About the Author

PART ONE Developing Corporate Finance Models

Chapter 1 Introduction

1.1 What is Financial Modelling?

1.2 Defining the Inputs and the Outputs of a Simple Financial Model

1.3 The Financial Modelling Process of More Complex Models

1.3.1 Step 1: Defining the Problem the Model Will Solve: The Fundamental Business Question

1.3.2 Step 2: Specification of the Model

1.3.3 Step 3: Designing and Building the Model

1.3.4 Step 4: Checking the Model's Output

1.4 Excel as a Tool of Modelling: Capabilities and Limitations

Chapter 2 A Short Primer in the Accounting of Financial Statements

2.1 The Accounting Equation

2.2 The Balance Sheet

2.3 The Income Statement

2.3.1 Cash Accounting Versus Accrual Accounting

2.4 The Cash Flow Statement

2.4.1 Operating Activities

2.4.2 Investing Activities

2.4.3 Financing Activities

2.4.4 Income Flows and Cash Flows

2.4.5 Preparing the Statement of Cash Flows

2.5 The Articulation of Income Statement, Balance Sheet, and Cash Flow Statements

2.6 Financial Statement Analysis: Ratio Analysis

2.6.1 Profitability Ratios

2.6.2 Liquidity Ratios

2.6.3 Solvency Ratios

2.6.4 Other Ratios

2.6.5 The Limitations of Financial Ratios

Chapter 3 Financial Statement Modelling

3.1 Introduction – How Financial Models Work

3.2 Collecting and Analyzing Historical Data

3.3 Selecting the Key Forecast Drivers

3.4 Modelling the Income Statement

3.5 Modelling the Balance Sheet

3.6 Modelling Interest and Circular References

3.7 Modelling ...