Financial Modeling

Financial statement analysis is useful to anticipate future conditions and, most important, as a starting point for developing strategies that influence a company's future course of business. 

An important step toward achieving these goals is to analyze the firm's financial ratios. Ratios are designed to highlight relationships between the financial statement accounts. These relationships begin to reveal how well a company is doing in its primary goal of creating value for its shareholders.

In finance an option is a contract between the option buyer (holder) and the option seller (writer). The buyer buys this contract from the seller (writer) for a fee (premium).

The option (contract) gives the buyer the right, but not the obligation, to buy (call) or sell (put) an asset at a predetermined price (strike price), at the expiration of the contract (European Option), or during a period of time (American Option).

The seller (writer) of the option contract has the obligation to allow the buyer to exercise the option at any time during the contract period.

Overview

Dynamic Arrays in Microsoft Excel is a game changer. To make it simple Dynamic Arrays (“DA”) allow you to work with multiple values at the same time.

This major change is expected to change the design and construction of excel models.

Dynamic Arrays are only available in Microsoft Excel 365. The functions that are available are presented below:

A merger is the combination of two businesses, while an acquisition is the purchase of the ownership of one business by another. Mergers & Acquisitions models (M&A) involve analysis for scenarios in which one company (the Buyer) proposes to offer cash or its own shares in order to purchase the shares of another company (the Seller or the Target). 

A leveraged buyout is the acquisition of a company using a significant amount of borrowed funds to pay for the purchase price of the company.