Building Financial Models: A Guide to Creating and Interpreting Financial Statements

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.

John S. Tjia is a founding partner in TMG Associates, LLC, a consulting firm with investment and commercial banking clients that specializes in financial modeling for corporate finance. Tjia is the former vice president in charge of the Models Group at JPMorgan Chase, and led the team that was responsible for designing and developing several generations of the analysis and execution models used by the firm's investment banking division worldwide. He has also taught modeling and valuation classes to hundreds of analysts and associates.