Financial Modeling training courses are all around the web and there has been lot written about learning Financial Modeling, however, most of the financial modeling courses are exactly the same. This goes beyond the usual gibberish and explore practical Financial Modeling as used by Investment Bankers and Research Analysts.
In this Free Online Financial Modeling Training Course, I will take an example of Colgate Palmolive and will prepare a full integrated financial model from scratch.
This Financial Modeling Course Tutorial guide is over 6000 words and took me 3 weeks to complete. Save this page for future reference and don’t forget to share it 
Financial Modeling Training – Read me First
Step 1 – Download Colgate Financial Model Template. You will be using this template for the tutorial
Step 2 – Please note you will get two templates – 1) Unsolved Colgate Palmolive Financial Model 2) Solved Colgate Palmolive Financial Model
Step 3- You will be working on the Unsolved Colgate Palmolive Financial Model Template. Follow the step by step Financial modeling Training instructions to prepare a fully integrated financial model.
Step 4 – Happy Learning!
In addition to financial modeling course, you can also take advantage of this Free Investment Banking Course.
I have made an easy to navigate table of contents for you.
- What is Financial Modeling?
- How to build a financial model?
- #1 – Colgate’s Financial Model – Historical
- # 2 – Ratio Analysis of Colgate Palmolive
- #3 – Projecting the Income Statement
- #4- Working Capital Schedule
- #5 – Depreciation Schedule
- #6 – Amortization Schedule
- #7 – Other Long Term Schedule
- #8 – Completing the Income Statement
- #9 – Shareholder’s Equity Schedule
- #10 – Shares Outstanding Schedule
- #11 – Completing the Cash Flow Statements
- #12- Debt and Interest Schedule Recommended
- Financial Modeling Course
- Free Financial Models
What is Financial Modeling?
Wikipedia defines “Financial Modeling” as follows –
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project, or any other investment. Financial modeling is a general term that means different things to different users; the reference usually relates either to accounting and corporate finance applications, or to quantitative finance applications.
In simple terms, financial modeling means forecasting the future of the company or an asset by way of an Excel Model that is easy to understand and perform scenario analysis. In the context of our discussion here, we will discuss Financial Modeling with respect to the forecasting of the future financials of the company. This free financial modeling training course will help you forecast the financial statements of the company i.e. Income Statement, Balance Sheet and Cash Flows. The excel model is also known as an Integrated Financial Statements Model.
How to build a financial model?
Now that we know what Financial Modeling is, let us look at how a financial model is build from scratch. This detailed financial modeling course will provide you with a step by step guide to create a financial model. The primary approach taken in this financial modeling course is Modular. Modular approach essentially means that we build core statements like Income Statement, Balance Sheet and Cash Flows using different modules/schedules. The key focus is to prepare each statement step by step and connect all the supporting schedules to the core statements on completion. I can understand that this may not be clear as of now, however, you will realize that this is very easy as we move forward. You can see below various Financial Modeling Schedules / Modules – 
Please note the following –
- The core statements are the Income Statement, Balance Sheet and Cash Flows.
- The additional schedules are the depreciation schedule, working capital schedule, intangibles schedule, shareholder’s equity schedule, other long term items schedule, debt schedule etc.
- The additional schedules are linked to the core statements upon their completion
- In this financial modeling course, we will build a step by step integrated financial model of Colgate Palmolive from scratch.
#1 – Financial Modeling – Project the Historicals
Step 1A – Download Colgate’s 10K Reports
“Financial models are prepared in Excel and the first steps starts with knowing how the industry has been doing in the past years. Understanding the past can provide us valuable insights related to the future of the company. Therefore the first step is to download all the financials of the company and populate the same in an excel sheet. For Colgate Palmolive, you can download the annual reports of Colgate Palmolive from their Investor Relation Section. 
Once you click on “Annual report”, you will find the window as shown below – 
Step 1B – Create the Historical Financial Statements Worksheet
- If you download 10K of 2013, you will note that only two years of financial statements data is available. However, for the purpose of Financial Modeling, the recommended dataset is to have last 5 years of financial statements. Please download the last 3 years of annual report and populate the historical.
- Many a times, this tasks seems too boring and tedious as it may take lot of time and energy to format and put the excel in the desired format.
- However, one should not forget that this is the work that you are required to do only once for each company and also, populating the historicals helps an analyst understand the trends and changes that were made in the financial statements.
- So please do not skip this, download the data and populate the data (even if you feel that this is donkey’s work 😉 )
If you wish to skip this step, you can directly download Colgate Palmolive Historical Model here.
Colgate Income Statement with historical populated
Colgate Balance Sheet Historical Data
# 2 – Financial Modeling – Ratio Analysis
A key to learning Financial Modeling is to be able to perform fundamental analysis. If fundamental analysis or Ratio Analysis is something new for you, I recommend that you read a bit on the internet. I intend to take an indepth ratio analysis in one of my upcoming posts, however, here is a quick snapshot of the Colgate Palmolive ratios
Step 2A – Vertical Analysis of Colgate
On the income statement, vertical analysis is a universal tool for measuring the firm’s relative performance from year to year in terms of cost and profitability. It should always be included as part of any financial analysis. Here, percentages are computed in relation to net sales which are considered to be 100%. This vertical analysis effort in the income statement is often referred to as margin analysis, since it yields the different margins in relation to sales. 
Vertical Analysis Results
- Gross Profit Margin has increased by 240 basis points from 56.2% in 2007 to 58.6% in 2013. This is primarily due to decreased Cost of Sales
- Operating Profit or EBIT has also shown improved margins thereby increasing from 19.7% in 2007 to 22.4% in 2012 (an increase of 70 basis points). This was due to decreased Selling general and administrative costs. However, note that the EBIT margins reduced in 2013 to 20.4% due to increase “Other expenses”
- Net Profit Margin increased from 12.6% in 2007 to 14.5% in 2012. However, Net Profit Margin in 2013 decreased to 12.9%, primarily due to increased “other expenses”.
- Earnings Per share has steadily increased from FY2007 until FY2012. However, there was a slight dip in the EPS of FY2013
- Also, note that the Depreciation and Amortization is separately provided in the Income Statement. It is included in the Cost of Sales
Step 2B – Horizontal Analysis of Colgate
Horizontal analysis is a technique used to evaluate trends over time by computing percentage increases or decreases relative to a base year. It provides an analytical link between accounts calculated at different dates using currency with different purchasing powers. In effect, this analysis indexes the accounts and compares the evolution of these over time. As with the vertical analysis methodology, issues will surface that need to be investigated and complemented with other financial analysis techniques. The focus is to look for symptoms of problems that can be diagnosed using additional techniques. Let us look at the Horizontal analysis of Colgate 
Horizontal Analysis Results
- We see that the Net Sales has increased by 2.0% in 2013.
- Also note the trend in Cost of Sales, we see that they have not grown in the same proportion has Sales.
- These observations are extremely handy while we do financial modeling
Step 2C – Liquidity Ratios of Colgate
- Liquidity ratios measure the relationship of the more liquid assets of an enterprise (the ones most easily convertible to cash) to current liabilities. The most common liquidity ratios are: Current ratio Acid test (or quick asset) ratio Cash Ratios
- Turnover Ratios like Receivables turnover, Inventory turnover and Payables Turnover
Key Highlights of Liquidity Ratios
- Current Ratio of Colgate is greater than 1.0 for all the years. This implies that current assets are greater than current liabilities and maybe Colgate has sufficient liquidity
- Quick Ratio of Colgate is in the range of 0.6-0.7, this means that Colgates Cash and Marketable securities can pay for as much as 70% of current liabilities. This looks like a reasonable situation to be in for Colgate.
- Cash Collection Cycle has decreased from 43 days in 2009 to 39 days in 2013. This is primarily due to the reduction in receivables collection period.
Step 2D – Operating Profitability Ratios of Colgate
Profitability ratios measure a company’s ability to generate earnings relative to sales, assets and equity 
Key Highlights – Profitability Ratios of Colgate
As we can see from the above table, Colgate has an ROE of closer to 100%, which implies great returns to the Equity holders.
Step 2E – Risk Analysis of Colgate
Through Risk Analysis, we try to gauge whether the company’s will be able to pay its short and long term obligtations (debt). We calculate leverage ratios that focu on the sufficiency of assets or generation from assets. Ratios that are looked at are
- Debt to Equity Ratio
- Debt ratio
- Interest Coverage Ratio
- Debt to Equity Ratio has steadily increased to a higher level of 2.23x. This signifies increased Financial Leverage and risks in the market
- However, the Interest Coverage Ratio is very high signifying less risk of Interest Payment Default.
#3 – Financial Modeling – Project the Income Statement
The very first step in the Income Statement is to model the Sales or Revenue items.
Step 3A – Revenues Projections
For most companies revenues are a fundamental driver of economic performance. A well designed and logical revenue model reflecting accurately the type and amounts of revenue flows is extremely important. There are as many ways to design a revenue schedule as there are businesses. Some common types include:
- Sales Growth: Sales growth assumption in each period defines the change from the previous period. This is simple and commonly used method, but offers no insights into the components or dynamics of growth.
- Inflationary and Volume/ Mix effects: Instead of a simple growth assumption, a price inflation factor and a volume factor are used. This useful approach allows modeling of fixed and variable costs in multi product companies and takes into account price vs volume movements.
- Unit Volume, Change in Volume, Average Price and Change in Price: This method is appropriate for businesses which have simple product mix; it permits analysis of the impact of several key variables.
- Dollar Market Size and Growth: Market Share and Change in Share – Useful for cases where information is available on market dynamics and where these assumptions are likely to be fundamental to a decision. For Example: Telecom industry
- Unit Market Size and Growth: This is more detailed than the preceding case and is useful when pricing in the market is a key variable. (For a company with a price-discounting strategy, for example, or a best of breed premium priced niche player) e.g. Luxury car market
- Volume Capacity, Capacity Utilization and Average Price: These assumptions can be important for businesses where production capacity is important to the decision. (In the purchase of additional capacity, for example, or to determine whether expansion would require new investments.)
- Product Availability and Pricing
- Revenue driven by investment in capital, marketing or R&D
- Revenue based on installed base (continuing sales of parts, disposables, service and add-ons etc). Examples include classic razor-blade businesses and businesses like computers where sales of service, software and upgrades are important. Modeling the installed base is key (new additions to the base, attrition in the base, continuing revenues per customer etc).
- Employee based: For example, revenues of professional services firms or sales-based firms such as brokers. Modeling should focus on net staffing, revenue per employee (often based on billable hours). More detailed models will include seniority and other factors affecting pricing.
- Store, facility or Square footage based: Retail companies are often modeled based on the basis of stores (old stores plus new stores in each year) and revenue per store.
- Occupancy-factor based: This approach is applicable to airlines, hotels, movie theatres and other businesses with low marginal costs.
Projecting Colgate Revenues
Let us now look at Colgate 10K 2013 report. We note that in the income statement, Colgate has not provided segmental information, however, as an additional information, Colgate has provided some details of segments on Page 87 
Source – Colgate 2013 – 10K, Page 86
Since, we do not have any further information about the segments, we will project the future sales of Colgate on the basis of this available data. We will use the sales growth approach across segments to derive the forecasts. Please see the below picture. We have calculated year-over-year growth rate for each segment. 
Now we can assume a sales growth percentage based on the historical trends and project the revenues under each segment. Total Net sales is the sum total of Oral, Personal & Home Care and Pet Nutrition Segment. 
Step 3B – Costs Projections
- Percentage of Revenues: Simple but offers no insight into any leverage (economy of scale or fixed cost burden
- Costs other than depreciation as a percent of revenues and depreciation from a separate schedule: This approach is really the minimum acceptable in most cases, and permits only partial analysis of operating leverage.
- Variable costs based on revenue or volume, fixed costs based on historical trends and depreciation from a separate schedule: This approach is the minimum necessary for sensitivity analysis of profitability based on multiple revenue scenarios
Cost Projections for Colgate
For projecting the cost, the vertical analysis done earlier will be helpful. Let us have a relook at the vertical analysis – 
- Since we have already forecasted Sales, all the other costs are some margins of this Sales.
- The approach is to take the guidelines from the historical cost and expense margins and then forecast the future margin.
- For example, Cost of Sales has been in the range of 41%-42% for the past 5 years. We can look at forecasting the margins on this basis.
- Likewise, Selling, General & Administrative Expenses have been historically in the range of 34%-36%. We can assume future SG&A expense margin on this basis. Likewise, we can go on for other set of expenses.
Using the above margins, we can find the actual values by back calculations.
For calculating the provision for taxes, we use the Effective Tax Rate assumption
Also, note that we do not complete the “Interest Expense (Income)” row as we will have a relook a the Income Statement at a later stage.- Interest Expense and Interest Income is covered in the Debt Schedule.
- We have also not calculated Depreciation and Amortization which has already been included in the Cost of Sales
- This completes the Income Statement (atleast for the time being!)
#4- Financial Modeling – Working Capital Schedule
Now that we have completed the Income statement, the next step in this Financial Modeling training course is to look at the Working Capital Schedule – Below are the steps that are to be followed for Working Capital Schedule
Step 4A – Link the Net Sales and Cost of Sales
Step 4B – Reference the Balance Sheet Data related to working capital
- Reference the past data from the balance sheet
- Calculate net working capital
- Arrive at increase/ decrease in working capital
- Note that we have not included short term debt and cash and cash equivalents in the working capital. We will deal with debt and cash separately.
Step 4C – Calculate the Turnover Ratios
- Calculate historical ratios and percentages
- Use the ending or average balance
- Both are acceptable as long consistency is maintained
Step 4D – Populate the assumptions for future working capital items
- Certain items without an obvious driver are usually assumed at constant amounts
- Ensure assumptions are reasonable and in line with the business
Step 4E – Project the future working capital balances
Step 4F – Calculate the changes in Working Capital
- Arrive at Cash Flows based on individual line items
- Ensure signs are accurate!
Step 4G – Link up the forecasted Working Capital to the Balance Sheet
Step 4H – Link Working Capital to the Cash Flow Statement
#5 – Financial Modeling – Depreciation Schedule
With the completion of the working capital schedule, the next step in this Financial Modeling Training Course is the project the capital expenditure requirements of Colgate and project the Depreciation and Assets figures. 
Colgate 2013 – 10K, Page 49
- Depreciation and Amortization is not provided as a separate line item, however it is included in the cost of sales
- In such cases, please have a look at the Cash flow statements where you will find the Depreciation and Amortization Expense Also note that the below figures are 1) Depreciation 2) amortization. So what is the depreciation number?
- Ending Balance for PPE = Beginning balance + Capex – Depreciation – Adjustment for Asset Sales (BASE equation)
Step 5A – Link the Net Sales figures in the Depreciation Schedule
- Set up the line items
- Reference Net Sales
- Input past capital expenditures
- Arrive at Capex as a % of Net Sales
Step 5B – Forecast the Capital Expenditure Items
- In order to forecast the Captial expenditure, there are various approaches. One common approach is to look at the Press Releases, Management Projections, Management Discussion and Analysis sections to understand the company’s view on future capital expenditure
- If the company has provided guidance on future capital expenditure, then we can take those numbers directly.
- However, if the capex numbers are not directly available, then we can calculate it crudely using Capex as % of Sales (as done below)
- Use your judgment based on industry knowledge and other reasonable drivers
Step 5C- Reference Past Information
- We will use Ending Balance for PPE = Beginning balance + Capex – Depreciation – Adjustment for Asset Sales (BASE equation)
- It is very difficult to reconcile past Property Plant and Equipment (PPE) data due to restatements, asset sales etc
- It is therefore recommended not to reconcile the past PPE as it may lead to some confusions.
Depreciation Policy of Colgate
- We note that Colgate has not explicitly provided detailed breakup of the Assets. They have rather clubbed all assets into Land, Building, Machinery and other equipments
- Also, useful lives for machinery and equipment is provided in range. In this case, we will have to do some guesswork to come to the average useful life left for the assets
- Also, guidance for useful life is not provided for “Other Equipments”. We will have to estimate the useful life for other Equipments
Colgate 2013 – 10K, Page 55
Below is the breakup of 2012 and 2013 Property, Plant and Equipment Details
Colgate 2013 – 10K, Page 91
Step 5D – Estimate the breakup of Property Plant and Equipment (PPE)
- First find the Asset weights of the Current PPE (2013)
- We will assume that these asset weights of 2013 PPE will continue going forward
- We use this asset weights to calculate the breakup of estimated Capital Expenditure
Step 5E – Estimate the Depreciation of Assets
- Please note that we do not calculate depreciation of Land as land is not a depreciable asset
- For estimating depreciation from Building improvements, we first make use of the below structure.
- Depreciation here is divided into two parts – 1)depreciation from the Building Improvements Asset already listed on the balance Sheet 2) depreciation from the future Building improvements
- For calculating the depreciation from building improvements listed on the asset, we use the simple Straight Line Method of depreciation
- For calculating future depreciation, we first transpose the Capex using the TRANSPOSE function
- We calculate the depreciation from asset contribution from each year
- Also, the first year depreciation is divided by 2 as we assume the mid year convention for asset deployment
Total Depreciation of Building Improvement = depreciation from the Building Improvements Asset already listed on the balance Sheet + depreciation from the future Building improvements 
The above process for estimating depreciation is used to calculate the depreciation of 1) Manfacturing Equipment & Machinery and 2) other Equipments as shown below. 
Other Equipments
Total Depreciation of Colgate = Depreciation (Building Improvements) + Depreciation (Machinery & Equipments) + Depreciation (other equipments) 
Once we have found out the total depreciation figures, we can put that in the BASE equation as show below
- With this we get the Ending Net PP&E figures for each of the years
Step 5F – Link the Net PP&E to the Balance Sheet
#6 – Financial Modeling – Amortization Schedule
The next step in this Free Financial Modeling Training Course is to forecast the Amortization. We have two broad categories to consider here – 1) Goodwill and 2) Other Intangibles.
Step 6A – Forecasting Goodwill
Colgate 2013 – 10K, Page 61
- Goodwill comes on the balance sheet when a company acquires another company. It is normally very difficult to project the Goodwill for future years.
- Goodwill is however, subject to impairment tests annually which is performed by the company itself. Analysts are in no position to perform such tests and prepare estimates of impairments
- Most analyst’s don’t project goodwill, they just keep this as constant and this is what we will also do in our case.
Step 6B – Forecasting Other Intangible Assets
- As noted in Colgate’s 10K Report, majority of the finite life intangible is related to the Sanex acquisition
- “Additions to Intangibles” are also very difficult to project
- Colgate’s 10K report provides us with the details of next 5 years of amortization expense.
- We will use these estimates in our Financial Model
Colgate 2013 – 10K, Page 61
Step 6C – Ending net intangibles are linked to the “Other Intangible Assets”
Step 6D – link Depreciation and Amortization to Cash Flow Statements
Step 6E – Link Capex & Addition to Intangibles to Cash flow statements
#7 – Financial Modeling – Other Long Term Schedule
The next step in this Financial Modeling Training course is to prepare the Other Long Term Schedule. This is the schedule that we prepare for the “left overs” that do not have specific drivers for forecasting. In case of Colgate, the other Long Term Items (left overs) were Deferred Income Taxes (liability and assets), Other assets and other liabilities.
Step 7A – Reference the historical data from the Balance Sheet
Also calculate the changes in these items. 
Step 7B – Forecast the Long Term Assets and Liabilities
- Keep the Long Term items constant for projected years in case of no visible drivers
- Link the forecasted long term items to the Balance Sheet as shown below
Step 7C – Reference Other Long Term Items to the Balance Sheet
Step 7D – Link the long term items to Cash Flow Statement
Please note that if we have kept the long term assets and liabilities as constant, then the change that flow to the cash flow statement would be zero.
#8 – Financial Modeling – Completing the Income Statement
- Before we move any further, we will actually go back and relook at the Income Statement
- Populate the historical basic weighted average shares and diluted weighted average number of shares
- These figures are available in Colgate’s 10K report
Step 8A – Reference the basic and diluted shares
At this stage, assume that the future number of basic and diluted shares will remain the same as they were in 2013. 
Step 8B – Calculate Basic and Diluted earnings per share
With this we are ready to move to our next schedule i.e. Shareholder’s Equity Schedule. 
#9 – Financial Modelling – Shareholder’s Equity Schedule
The next step in this Financial Modeling Training Course is to look at the Shareholder’s Equity Schedule. The primary objective of this schedule is to project equity related items like Shareholder’s Equity, Dividends, Share Repurchase, Option Proceeds etc. 
Colgate’s 10K report provides us with the details of common stock and treasury stock activities in the past years as shown below. 
Colgate 2013 – 10K, Page 68
Step 9A – Share Repurchase: Populate the historical numbers
- Historically, Colgate have bought back shares as we can see the schedule above.
- Populate the Colgate’s shares repurchase (millions) in the excel sheet.
- Link the historical EPS (diluted) from the Income Statement
- Historical Amount Repurchased should be referenced from the cash flow statements
Step 9B – Share Repurchase: Calculate the PE multiple (EPS multiple)
- Calculate the implied average price at which Colgate has done share repurchase historically. This is calculated as Amount Repurchased / Number of shares
- Calculate the PE multiple = Implied Share Price / EPS
Step 9C – Share Repurchase: Finding Colgate’s Share Repurchased
Colgate has not made any official announcement of how many shares they intend to buyback The only information that their 10K report shares is that they have authorized a buy back of upto 50 million shares. 
Colgate 2013 – 10K, Page 35
- In order to find the number of shares bought back, we need to assume the Share Repurchase Amount. Based on the historical repurchase amount, I have taken this number as $1,500 million for all the future years.
- In order to find the number of shares repurchased, we need the projected implied share price of the potential buy back.
- Implied share price = assumed PE multiple x EPS
- Future buy back PE multiple can be assume on the basis of historical trends. We note that Colgate has bought back shares at an average PE range of 17x – 25x
- Below is the snapshot from Reuters that helps us validate PE range for Colgate
www.reuters.com
- In our case, I have assumed that all future buybacks of Colgate will be at a PE multiple of 19x.
- Using the PE of 19x, we can find the implied price = EPS x 19
- Now that we have found the implied price, we can find the number of shares repurchased = $ amount used for repurchase / implied price
Step 9D – Stock Options: Populate Historical Data
- From the summary of common stock and shareholder’s equity, we know the number of options exercised each year.
In addition, we also have the Option Proceeds from the cash flow statements (approx)
- With this, we should be able to find the effective strike price
Colgate 2013 – 10K, Page 53
Also, note that the stock options have contractual terms of six years and vest over three years. 
Colgate 2013 – 10K, Page 69
With this data, we fill up the Options data as per below 
We also note that the weighted average strike price of stock options for 2013 was $42 and the number of options exercisable were 24.151 million 
Colgate 2013 – 10K, Page 70
Step 9E – Stock Options: Find the Option Proceeds
Putting these numbers in our options data below, we note that the option proceeds are $1.014 billion 
Step 9F – Stock Options: Forecast Restricted Stock Unit Data
In addition to the stock options, there are Restricted Stock Units given to the employees with the weighted average period of 2.2 years 
Colgate 2013 – 10K, Page 81
Populating this data in the Options dataset 
For simplicity sake, we have not projected options issuance (I know this is not the right assumption, however, due to lack of data, I am not taking any more option issuances going forward. We have just taken these as zero as highlighted in the grey area above. Additionally, the restricted stock units are projected to be 2.0 million going forward.
Step 9G- Dividends: Forecast the Dividends
- Forecast estimated dividends using
- Pay out ratio
- Fixed dividend outgo
- Per share payout
- From the 10K reports we extract all past information on dividends
- With the informatio of dividends paid, we can find out the Dividends payout ratio = Total Dividends Paid / Net Income.
- I have calculated the dividends payout ratio of Colgate as seen below –
We note that the dividends payout ratio has been broadly in the range of 50%-60%. Let us take an assumption of Dividends payout ratio of 55% in the future years. - We can also link the projected Net Income from the Income statement
- Using both the projected Net Income and the dividends payout ratio, we can find the Total Dividends Paid
Step 8H – Forecast equity account in its entirety
With the forecast of share repurchase, option proceeds and dividends paid, we are ready to complete the Shareholder’s Equity Schedule. Link all these up to find the Ending Equity Balance for each year as shown below. 
Step 9I – Link Ending Shareholder’s Equity to the Balance Sheet
Step 9J – Link Dividends, Share repurchase & Options proceeds to CF
#10 – Financial Modeling – Shares Outstanding Schedule
The next step in this online financial modeling training is to look at the Shares Oustanding Schedule. Summary of Shares Outstanding Schedule
- Basic Shares – actual and average
- Capture past effects of options and convertibles as appropriate
- Diluted Shares – average
- Reference Shares repurchased and new shares from exercised options
- Calculate forecasted basic shares (actual)
- Calculate average basic and diluted shares
- Reference projected shares to Income Statement (recall Income Statement Build up!)
- Input historical shares outstanding information
- Note: This schedule is commonly integrated with the Equity Schedule
Step 10A – Input the historical numbers from the 10K report
- Shares issued (actual realization of options) and shares repurchased can be referenced from the Shareholder’s Equity Schedule
- Also, input weighted average number of shares and effect of stock options for the historical years.
Step 10B – Link share issuances & repurchases from Share Equity Schedule.
Basic Shares (Ending) = Basic Shares (Beginning) + Share Issuances – Shares Repurchased. 
Step 10C – Find the basic weighted average shares,
- we find the average of two years as shown below.
- Also, add the effect of options & restricted stock units (referenced from the shareholder’s equity schedule) to find the Diluted Weighted Average Shares.
Step 10D – Link Basic & diluted weighted shares to Income Statement
- Now that we have calculated the diluted weighted average shares, it is time for us to update the same in the Income Statement.
- Link up forecasted diluted weighted average shares outstanding to Income Statement as shown below
With this we complete the Shares Oustanding Schedule and time to move to our next set of statements.
#11 – Financial Modeling – Completing the Cash Flow Statements
It is important for us to fully completed the cash flow statements before we move to our next and final schedule i.e. the Debt Schedule Until this stage, there are only a couple of things that are incomplete
- Income Statement – interest expense/ income are incomplete at this stage
- Balance Sheet – cash and debt items are incomplete at this stage
Step 11A – Calculate Cash Flow for Financing Activities
Step 11B – Find net increase (decrease) in Cash & Cash Equivalents
Step 11C = Complete the cash flow statements
Find the year end cash & cash equivalents at the end of the year. 
Step 11D – Link the cash & cash equivalents to the Balance Sheet.
Now we are ready to take care of our last and final schedule, i.e. Debt and Interest Schedule
#12- Financial Modeling – Debt and Interest Schedule
The next step in this Online Financial Modeling Training Course is to complete the Debt and Interest Schedule. Summary of the Debt and Interest – Schedule
Step 12A – Set up a Debt Schedule
- Reference the Cash Flow Available for Financing
- Reference all equity sources and uses of cash
Step 12B – Calculate Cash Flow from Debt Repayment
- Reference the Beginning Cash Balance from the Balance Sheet
- Deduct a minimum cash balance. We have assumed that Colgate would like to keep a minimum of $500 million each year.
Skip Long Term Debt Issuance/ Repayments, Cash available for Revolving Credit Facility and Revolver section for now 
From Colgate’s 10K report, we note the available details on Revolved Credit Facility 
Colgate 2013 – 10K, Page 35
Also provided in additional information on Debt is the committed long term debt repayments. 
Colgate 2013 – 10K, Page 36
Step 12C – Calculate the Ending Long Term Debt
We use the Long Term Debt repayment schedule provided above and calculate the Ending Balance of Long Term Debt Repayments 
Step 12D – Link the long term debt repayments.
Step 12E -Calculate the discretionary borrowings/paydowns
Using the cash sweep formula as shown below, calculate the discretionary borrowings / paydowns. 
Step 12F – Calculate the Interest Expense from the Long Term Debt
- Calculate the average balance for Revolving Credit Facility and Long Term Debt
- Make a reasonable assumption for an interest rate based on the information provided in the 10K report
- Calculate Total Interest Expense = average balance of debt x interest rate
Find the Total Interest Expense = Interest (Revolving Credit Facility) + Interest (Long Term Debt) 
Step 12G – Link Principal debt & Revolver drawdowns to Cash Flows
Step 12H – Reference Current and Long Term to Balance Sheet
- Demarcate the Current Portion of Long Term Debt and Long Term debt as show below
- Link the Revolving Credit Facility, Long Term Debt and Current Portion of Long Term Debt to the Balance Sheet
Step 12I – Calculate the Interest Income using the average cash balance
Step 12J – Link Interest Expense and Interest Income to Income Statement
Perform the Balance Sheet check : Total Assets = Liabilities + Shareholder’s Equity
Step 12K – Audit the Balance Sheet
If there is any discrepancy, then we need to audit the model and check for any linkage errrors 
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(20 Courses) - Part 3 – Investment Banking Add-ons
(13 Courses) - Part 4 – Investment Banking Foundation Courses
(23 Courses) - Part 5 – Soft Skills for Investment Bankers
(17 Courses)
Part 3 of this module specifically takes care of Advanced Financial Modeling Courses.
| Sr. No. | Course Name | Duration (Hrs) |
|---|---|---|
| 27 | Financial Modeling-Broadcasting Sector Training | 3 |
| 28 | Apparel Sector Financial Modeling training | 2.5 |
| 29 | Retail Sector Financial Modeling | 3 |
| 30 | Financial Modeling and Valuation: Banking Sector | 8.5 |
| 31 | Telecom Sector Financial Modeling | 3.5 |
| 32 | Financial Modeling: Media Sector Training | 3.5 |
| 33 | Financial Modeling Automobile Sector course | 4.5 |
| 34 | Broadcasting Sector Financial Modeling-Comcast | 3 |
| 35 | Financial Modeling – Pharma Sector | 15 |
| 36 | Financial Modeling – Oil & Gas Sector | 15 |
| 37 | Financial Modeling – IT Sector | 10 |
| 38 | Hospital Sector Financial Modeling training | 15 |
| 39 | Education sector Financial Modeling Training | 15 |
| 40 | Financial Modeling – Asian Paints | 2 |
| 41 | Financial Modeling – Biotechnology Sector | 15 |
| 42 | Financial Modeling – Cement Sector | 15 |
| 43 | Real Estate Financial Modeling | 15 |
| 44 | Negotiable Instruments Act | 2 |
| 45 | Principle and Practice of Insurance | 2 |
| 46 | Financial Modeling & Valuation – Cable TV Sector (Time Warner Inc) | 4 |
Financial Models Download
What next?
If you learned something new or enjoyed this Financial Modeling Training Course, please leave a comment below. Let me know what you think. Many thanks and take care. Happy Learning!
By abhi on
Hi,
In leverage buyout models, would the integrated three statement model be as advanced as this example?
By Dheeraj on
Yes Abhishek, they are generally advanced models
By abhi on
Hi,
In the working capital schedule, how did you calculate the (Increase)/Decrease in WC for 2009 of 429?
I understand how the 2010, 2011 etc.. values are arrived at. But for 2009, since 2008 data is not shown – do you use some other method?
Thanks
By abhi on
Sorry, i figured it out.
By ItsMe on
Hi Dheeraj,
Your website is excellent, I have used it many times as a reference for modeling. I am also a member of eduCBA – I have the investment banking bundle.
I am unable to balance a model – I have a constant difference, which doubles every year. Would you be willing to take a look? Thanks.
By Dheeraj on
Sure. Please send the model.
By Sevda on
Hello.
First of all I’d like to thank you for helping us to sharpen our finance
skills. I need help. I am looking for “Excel Worksheets and Solutions
to Exercises to Accompany Financial Modeling, fourth edition, Simon
Benninga”. If You have it or can help me to find it, I’d be very
grateful. It is very important for me to find it.
Thank you in advance and waiting your reply.
By Dheeraj on
Hi Sevda,
I do not have the these templates.
thanks,
Dheeraj
By Raj on
Hello sir,
I am currently working as a QA for payment domain in an IT company. What are your thoughts on pursuing this finance courses for a person like me?. I am even interested in CFA although my interests are not aligned with the job I do. I have a certification from University of Michigan about – introduction to finance. That’s what made me get hooked into this field. I am now planning to do MBA with this finance knowledge as my assets, as I am already half way through your financial modelling course. I am willing to learn to more and get involved in this field. Please help me in understanding what would be the right way to go ahead
Regards,
Raj
By Dheeraj on
Hello Raj,
I think CFA is the right thing to start with. At least, do plan to give CFA Level 1 ASAP. In addition, you can do these financial modeling courses to solidify your concepts practically.
Hope this helps,
Dheeraj
By Pratik Biyani on
Hello Dheeraj Sir,
First of all i would like to thank you for all the detailed courses and the time that you have taken out to make them.
However, can you please send me the download link of the Ratio Analysis in this course. Also, “Download the Colgate Palmolive Historical Model here” is not working.
Thank you so much!
My EMAIL ID – pratikbiyani90@gmail.com
By Dheeraj on
Hi Pratik,
Will send you the historical financial model with ratio analysis soon.
Thanks,
Dheeraj
By Milan on
Hi Dheeraj,
I have some problems to download the files. Could you please send it to my mail directly?
Thanks in advance, best regards,
Milan
By Dheeraj on
Sorry for the inconvenience caused Milan. I have sent the models to your email id.
Thanks,
Dheeraj
By Kristein M on
Thanks Sir for this financial model article, it is quite useful & worthy too to know how to make a financial model in an easy go. Thank you for making it easy to understand its fundamentals properly.
By Dheeraj on
thanks Kristein!
By Saira Thomas on
Thank you for enlightening us with your great articles on finance. Your articles are truly appreciable; they are easy to understand & grasp. This financial modeling article is very interesting to know the performance of the companies. Thank you for teaching through the mode of an article how to prepare a financial model.
By Dheeraj on
Thanks Saira, please do let me know incase you have any questions!
Best,
Dheeraj
By Vivian Dsouza on
Simply amazing. Dheeraj thanks a lot for your contribution, extremely helpful. Providing a thorough knowledge on each and every step caught my attention. Thanks again for the contribution, and yes all the new posts on your site are simply awesome as well.
By Dheeraj on
Thanks Vivian! Do let me know if you have any questions.
By Jyoti Sahani on
I am glad that i found this free financial modeling course on wallstreetmojo. This is a complete step by step training in simple way. Really helpful for anyone who is naive to financial modeling.
By Dheeraj on
Thank you Jyoti!
By Mitesh Agarwal on
The training on preparing financial models that too for FREE is awesome. I really appreciate the way it has been explained step by step and in a concise manner. Looking forward to learn some other advanced modeling lessons as well.
By Dheeraj on
Thank you Mitesh. The advanced modeling sessions are planned and are definitely coming in 2016.
Cheers,
Dheeraj
By Zoe on
This financial modeling guide is great. All concepts are explained to the point and the explanation is crisp. I am now going to try making one financial model. Thanks for the help!
By Dheeraj on
Hello Zoe,
I am glad you liked the financial modeling course. Please let me know if you have any questions.
Thanks,
Dheeraj
By Visakha Rajpal on
I am amazed that this free course has actually covered everything. Specially the way in which each calculation and formula is explained. Use of excel is done very well. Thanks Dheeraj for sharing the content
By Dheeraj on
thanks Visakha!
By Joseph Dominic on
This is an amazing course and that to for free. The model is very well explained. Kudos Dheeraj for sharing such a content of true Value
By Dheeraj on
thanks Joseph. Please do let me know if you have any questions.
By Shreenath Iyer on
Thank you Dheeraj Sir for your informative article on Financial Modeling. Truly your articles are amazing and helpful. The way you explain the things through your articles is too good. I love your way of explaining the things in the form of examples. I intend to know what does actually financial modeling means your this article has helped me a lot in understanding about financial modeling.
By Dheeraj on
thank you Shreenath
By Sushree Sawant on
This post is awesome Sir! This can really help freshers like me understanding financial forecasting. Thanks a lot and keep providing knowledge to us from your vast industry experience.
By Dheeraj on
thanks Sushree!
By Jacque on
This was very helpful as I prepare for an interview where I might be asked about financial modeling. I learned so much. Thank you for creating this free course!
By Dheeraj on
Its my pleasure Jacque!
By Tess on
Thanks Dheeraj for this tutorial. You made it appear simple. It looks great! I also would like to request for an email of Solved and Unsolved Colgate-Palmolive Financial Model.
Tess
By Dheeraj on
Hello Tess,
Many thanks. I have mailed you the financial modeling templates.
Best,
Dheeraj
By sylvia on
Hi, could you kindly email me the colgate models, both the solved and unsolved. Am unable to access. Thanks. My email is sylvianyakio@yahoo.com
By Dheeraj on
Hi Sylvia,
I just emailed you both the models.
thanks,
Dheeraj
By Stacey Zafiroff on
Hi Dheeraj– Can you email me both models too? Staceyzafiroff@gmail.com
Thanks so much. You are a guru! You must analyze the stock market with impeccable precision. What’s your average annual return? I know it must be high!
Also, could you analyze GoPro next? I’m interested to see what your in depth analysis shows on this volatile, speculative stock. Thanks, Stacey Zafiroff
By Dheeraj on
Thank you Stacey for the motivation :-). i have sent you the models to your email id. Though i am not tracking GoPro, I will check and get back to you if i can evaluate this stock.
Best,
Dheeraj
By Pooja on
Sir I’m CA FInal student. I wish to join this course. can you guide me
By Dheeraj on
Hi Pooja,
You need to just download the Colgate Model (from the form at the start of this post) and start learning financial modeling.
Happy Learning!
Thanks,
Dheeraj
By Pooja on
but i am confused about some other course. I am still thinking either to join CFP or CFA. I am not sure that joining this course with CA will be better for me?
By Junbeom Park on
Hi Dheeraj !
My name is Jun Park
Many thanks for your useful information, it is a boon for me.
I work for Utility in Korea and i am deeply involved in nuclear financing
So I Would like to learn financial modelling step by step
but i can’t download your all of sample modelling in your blog
could you email it to me ?
my email address : jaybee13102082@gmail.com
thank you,
Junbeom
By Dheeraj on
Hi Junbeom,
I have mailed you model. Let me know if you need anything else.
Thanks,
Dheeraj
By Taca on
hi Dheeraj,
I took a finance course 10 years ago, do you think I need to take a refresher course? It yes, can you please recommend something ( either an online tutorial or a book ). I work as a senior accountant so I’m familiar with most of it.
Thank you,
Taca
By Dheeraj on
Hi Taca,
Just curious to know what is your objective of taking a finance course? I can guide you further based on your inputs.
Best,
Dheeraj
By Bett on
Dheeraj,Thank you very much for taking time to share such insight in financial modeling.Why do you subtract 1 from the base year in the horizontal analysis formula. What do you call that.
Regards,
Bett
By Bett on
Dheeraj, I have known why. It is simply to arrive at the net movement.
Regards,
By Dheeraj on
thanks Bett!
By Martin on
Thats absolutely amazing! This is highly appreciated
By Dheeraj on
thanks Martin!
By Ramesh on
HI,
your page is having tooo good information for modelling learners
By Dheeraj on
thank you Ramesh!
By Jai on
Hi,
You have beautifully explained and demonstrated the flow of the FMCG company model. Thanks for it. However, I wish to value a company which is still in the nascent stage of development, i.e., the company does not have any revenue from its product (its product are in the pipeline stage). then in that case how you value such a company, like any early stage pharmaceutical/biotech company listed in the stock exchange. Could you please build such model?
Thanks.
By Dheeraj on
Hi Jai,
thank you. Currently i do not have such a model in place. A company that does not have any revenue from its product till date will be valued on the basis of how the growth may look like once they launch the product. Cant detail things much here without knowing the whereabouts of the company.
Thanks,
Dheeraj
By Pawan on
Hi Dheeraj
Its amazing to go through this. Really great work.
Regards: Pawan
By Dheeraj on
Hi Pawan,
Many thanks
By Anshul Agarwal on
Please send me your course details along with commercial over my mail id.
By Dheeraj on
Hey Anshul,
this is a free course. You just need to download the templates and start learning!
All the best!
Dheeraj
By Him on
Hi Prof Dheeraj,
Your Tutorial is really nice and I learnt a lot of the mechanisms from it. One question. I have already tried to go through the model and I got stuck during the equity section Step 9C to find out he implied share price. However at that time, my income statement is still not finished as the interest expense statistic is not ready and hence no EPS is derived. If I reverse the step to calculate interest expense first, equity data and cash flow from financing activities needs to be used. How should I solve this problem? Many thanks!!!
Him
By Dheeraj on
Hello Him,
Thanks for your note. You need to carefully follow each step one by one without skipping any. This also means that you have to follow the same sequence as suggested in this tutorial. It will be great if you could send me your Financial Model – i will have a look at it and see the exact nature of the problem.
Best,
Dheeraj
By malik jawad on
thanks a lot for the financial model training and it was great experiance.
it really help me a lot but in the end i fail to tie a balance sheet i don’t know where i went wrong.
please can you help me out?? need further guidence…..
By Dheeraj on
Hello malik,
I can surely help you out on this. Please let me know the questions that you have.
Best,
Dheeraj
By Mark W on
Awesome financial modeling tutorial. I will be working on this provided unsolved Colgate financial model and then hopefully be able to do my own model of another company. Once completed I am going to try and show interviewers what I have accomplished and hopefully land a financial analyst entry level position.
By Dheeraj on
Hello Mark,
Many thanks! Do let me know if you run into any issue while practicing financial modeling.
Best,
Dheeraj
By أسامة ابراهيم on
i need to learn
By Francis on
I really appreciate the effort you put in to come up with this very nice tutorial. I have one main issue anytime i look at a financial model, Please i would like to know how to check if the financial model built is reliable in terms of the accuracy of the forecast.
Thanks
By Dheeraj on
Hi Francis,
Accuracy of the forecast can be done by revisiting assumptions and checking the same with the publicly available resources. For example, in the press releases, if the company management said that they will spend $200million on capex, then in your model these numbers should match. Likewise, in results and conference calls, management do provide their guidance on key numbers like Revenue, profit etc – broadly these should be in line with the estimates provided. Also, you may want to check the consensus figures to check if your forecasts are in sync with other research analysts or are high/low.
Thanks,
Dheeraj
By Adam Chan on
This is really amazing stuff Dheeraj, you were able to break the financial modeling concepts down into an extremely digestible form for ease of learning, much appreciated! I was just wondering, is there a follow up post on how to conduct a scenario analysis?
Once again, many thanks for your great work!
By Raj Bhagat on
Hi Dheeraj, Thank you for this tutorial, Dheeraj, i need your guidance pls, I am 32 years old,BCA graduate in job and interested in to be a Equity research analyst. Please guide me.
Thanks
By Dheeraj on
Hello Raj,
Can you please let me know what help are you looking forward to.
thanks,
Dheeraj
By Emmanuel on
quite invaluable stuff. did you leave a link for the videos?? or did i miss something. otherwise I will say well done for making this free as well.
By David on
Dear Dheeraj,
I desire to learn to be a finance guru ALMOST like you. However problem is i have no understanding and dont know where to start from. I really admire you finance people but i have no knowledge and i am ready to learn and hopefully get a CFA qualification for myself as it is not common here in Ghana.
Can you advise on what i need to do and learn to at least be able to understand what you have done inside out and get ready to do more complex things? I love to project figures naturally so i trust i will enjoy finance but i need to know how i can start understanding from scratch so i can understand all about finance including NYSE, derivatives, options reading and interpretations. I want a career in finance and set a company later when i have money.
I hope to hear from you.
By Dheeraj on
Hello David,
Thanks for your kind words! I think getting a CFA charter will be first step towards a career in Finance. I strongly recommend the same considering your enthusiasm for Finance.
Best,
Dheeraj
By ferdinand on
Thanks Mr Dheeraj sir, for sharing this knowledge. I need this for my financial self study. Love the way you present all the information And the memes too.
Ferdinand
By Dheeraj on
Many thanks Ferdinand!
By Dheeraj on
Thank you Ferdinand!
By John Munene Nyagah on
I am interested in building my finance career experience in Financial Modelling and i have found these materials as a good starting point. I am impressed.
By Dheeraj on
Thanks John
By Naman Khanna on
Hi..
Dheeraj, very deep insight about the subject and the way you have put in here is symphonic.
This is to supplement you already perfect share of wisdom herein above that a Sub-head Shareholders’ Equity Schedule could be a shade more elaborate.
Its the best available online material. People who have FM-phobia will overcome there fears by the end of the page.
Humbled,
Naman Khanna
By Dheeraj on
Naman, Thank You so much for this feedback. I feel humbled.
By Siva Kumar on
Dear Dheeraj,
Thanks very much for sharing the template. It is an excellent tool to understand the topic financial modelling.
By Priti on
Hi Dheeraj,
The model template is excellent. Can we get new sheet/ addendum wherein we can find actual performance v/s projections..
By Sulaiman on
kapan anda membuka training di Jakarta di tahun 2015 ini. Tolong contack saya atau send a email. I will joint
By M.A.R Shanas on
Thank you for this document.
By Nao on
Hi Dheeraj,
Thank you very much for your work.
I’m afraid this is not an appropriate place but I have a question regarding depreciation schedule in Alibaba IPO model.
You set the useful term of computer equipment and software as 3years, however you continue to book the depreciation cost after the forth year.
For example, the capex of computer equipment in 2015 is 4,193. But the total depreciation generated from this capex is 10,482 from Mar-15 to Mar22.
This end up a negative number of PP&E in Mar-22, -1,813, cell in the same sheet.
Also I think you are using wrong useful life for all of the three PP&E. Although you set 4 years as the useful time of computer equipment in , you apply 3 years in .
Could you show me the correct calculation?
By Aseef Y on
Hi Dheeraj, Thank you so much for this financial model tutorial.
By Mike on
Thanks for the great tutorial. I have doubt on the debt schedule. Why do you consider dividends to be paid out before arriving at the cash available for debt service? Doesn’t debt have preference over equity?
Regards
By Naman Khanna on
Dear Mike,
Dividends are returns for shareholders. Basis the performance of current year dividend is distributed to shareholders. On the other hand cash sweep is essentially a cash surplus after considering all the cash operations for the year. Therefore, the preferential treatment to service debt before equity does not arise here.
Its just like earmarking every possible cash outflow before deciding upon to repayment.
Regards,
Naman Khanna
By Neetesh Dohare on
HI Dheeraj,
Today I was going through the Colgate Financial Model. I realized one thing, that the way the revenues of Colgate were forecasted is more kind of an approximation. Simply taking AM/GM would limit our forecasting.
I am thinking of this, please let me know if the following approach will correct or not?
What I believe is this -> Although the industry & the firm are at mature stage, but I was thinking of another approach. The another approach is to see through the sales-gdp regression analysis. If we find that the p value is 0.05 & both the variables are dependent, one can find out the sales. Even one can do the same thing with the market size as well & then have a look at the Annual reports to see the future plans & adjust the computed sales according to best case & worst case scenarios.
Is my approach kind of more complicated/incorrect, please let me know.
Thanks in Advance.
By Neetesh Dohare on
Hi Dheeraj,
Could you please help me out at my query.
By Dheeraj on
Hello Neetesh, Thanks for the reminder
I see a point in taking the approach like you are suggesting. Would call this as a mathematical approach to projecting revenues using regression analysis. Unfortunately, I have not yet seen many models where this technique is primarily used to project revenues. One reason could be availability of the data to make it statistically viable. Additionally, the approach I suggested is too simplistic. A research analyst will do well do dig into the segments, product portfolios and geographies to find the growth rate of sub parts and then add it up. However, it takes lot of time and I avoided presenting those complex forecasts at this stage.
Hope this helps.
Best,
Dheeraj
By Carson on
Hi Dheeraj,
Thank you very much for putting this tutorial together. It is an amazing guide… the best that I’ve seen.
I do have a quick question for you though – why is it that circular references are allowed to exist in this model?
Specifically, I am referring to the circular reference found in the “Basic Weighted Average Shares” and “Diluted Weighted Average Shares” on the Income Statement. In step 8A, we were told to assumed that the future number of basic and diluted shares will remain the same as they were in 2013. However, in step 10D, we linked the basic & diluted weighted shares we calculated on the Shares Outstanding Schedule back to the Income Statement.
Since we were only able to calculate 10D by assuming 8A, why do we plug the calculated amount to replace the assumed amount?
By Brian on
Any chance I can get a copy of the colgate example excel file. I would really appreciate it. Thanks
By Dheeraj on
Hey Brian, you just need to download the excel sheet from the form provided above. I will send you the excel sheets in this doesn’t work for you.
By Zach on
Note: Maybe I’m wrong, but I don’t think you mention to adjust non-controlling interest on the balance sheet, so I ended up with an imbalance for about half an hour until I realized that was the problem.
By COSTAS N HADJIGAVRIEL on
THIRTY YEARS IN FINANCIAL SERVICES, I CAN HARDLY THINK OF A BETTER TREATMENT OF FINANCIAL MODELING.
EXCELENT.
COSTAS
By Dheeraj on
Hello Costas, thank you for your kind words
By Mario on
Hi Dheeraj, first of all, thank you very much for your work.
I had a problem downloading the template, despite I´d tried several times (using different email adress) the email didn,t arrive, neither to the Inbox nor to the Junk box. Is it possible to download it in any different way?
Thank you
By Komal Malhotra on
there is a perfect blend of all the classroom teachings we have had during graduation/post-graduation years to real life examples in terms of their implementation and execution. i look forward to more such courses!
Keep up the good works !!
By Santosh on
Hi Dheeraj, Its always been rewarding and intellectual feast for me to learn things from your case studies. Kudos! Great Work on Colgate-Palmolive.
By Dheeraj on
Thanks Santosh for your kind words. I am glad you liked the tutorial.
Best,
Dheeraj
By Mario on
Hi Dheeraj, first of all, thank you very much for your work.
I had a problem downloading the template, despite I´d tried several times (using different email adress) the email didn,t arrive, neither to the Inbox nor to the Junk box. Is it possible to download it in any different way?
Thank you
By sandeep on
Thank you dheeraj for such a great insight about financial modeling.awesome work done by you.
By Dheeraj on
Thank you Sandeep for your kind consideration. I hope you liked the Financial Modeling Training Tutorial.
Best,
Dheeraj
By Anna on
Thank you Dheeraj! Can you please answer my email about the Alibaba Group? It was sent about 2 weeks ago. And just one more question…how do you estimate the percentages for the further years? Like the growth rates (4,0%; 1,0%; 1,0%; 10%; etc) at the Segmental Information (Income Statement of Colgate).
By Syed Zafarul Hasan on
Amazing work. Thanks for making it simple. Get back to you if need be.
By Sudeep on
Thanks for sharing this well explained tutorial. Can you share financial model related to Indian banking sector.
By Dheeraj on
Thanks Sudeep. At this stage i do not have a banking model, however, I do plan to write about it in my coming posts.
By Stephan on
Thank you very much. I really appreciate your expertise in breaking this down to a very simple methodology. There is no limit to how far I can take this. Thank you again.
By Dheeraj on
Many thanks Stephan
I am glad you liked the tutorial. Hope this proves useful.
Best,
Dheeraj
By Nidhi on
Thanks Dheeraj for such a wonderful explanation of financial modelling. Can you share some sector specific template like banking and oil& gas and important ratios that are covered in these sectors.
By Dheeraj on
Thanks Nidhi. I look forward to preparing a banking sector model pretty soon. Will let you know about the same.
Best,
Dheeraj
By Manohar on
wow, you made it so easy to understand…many Thanks Dheeraj
By Dheeraj on
My pleasure Manohar
By Rachael on
Hi Dheeraj, thanks for this awesome tutorial. When i try to open the Financial Model of Colgate, it gives me circular reference. Does the model contain any errors or am i missing something?
By Dheeraj on
Hi Rachael, many thanks for the download. This financial model contains circular references as the financial statements (Income statmements, Balance Sheet and Cash Flows) are interlinked. Circular references come when we link the Interest expense from the Debt Schedule to the Income Statement. You can remove the error by going to File->Options->Formulas->Enable iterative calculations.
Hope this helps,
Dheeraj
By Harjot Singh on
Than you so much for sharing
By Dheeraj on
my pleasure Harjot!
By Avinash Sharma on
Tthis was a great learning i would further like to learn and want to connect with you
By Dheeraj on
Sure Avinash. You can reach me at dheeraj (at) wallstreetmojo(dot) com.
Best,
Dheeraj
By Gates on
Greatly appreciated!
By Dheeraj on
thanks Gates!
By Nikola on
Thanks for sharing. Amazing work.
By Dheeraj on
Thanks Nikola for the appreciation
By Neeraj on
Wow Thanks for this stuff. So kind to share this complex – made it easy financial Modelling tutorial
By Dheeraj on
Thanks Neeraj. Hope you enjoyed this Financial Modeling tutorial.
By Vishesh N Singhi on
Many thanks Dheeraj sir for this financial modeling tutorial.
By Dheeraj on
My pleasure Vishesh
By Nick T on
This is an epic Financial Modeling Tutorial. Best I have ever read. I have bookmarked this one and will get back to you once i try unsolved templates
By Nick T on
This is an epic Financial Modeling tutorial. Bookmarked for reference. Thank You. I will followup with more questions as i try the unsolved template.