Financial modelling doubts

Posts: 2
Joined: Tue Sep 11, 2012 12:29 pm

Financial modelling doubts

Postby ajay190 » Sun Sep 23, 2012 12:08 am


Can you please explain us below topic

1)Building interest on excess cash and cash revolver.

2)And how we can create dupont analysis the way it is created in Groupon model

3)Modelling Deferred tax.

-Ajay Agarwal.

Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

Re: Financial modelling doubts

Postby pankaj » Wed Sep 26, 2012 11:44 pm

to build interest on excess cash/ cash revolver you need to "on" the "Enable iterative calculation" option (file -->Options--->Formulas). So,once the iterative calculation option is on, you can link the profit and loss line item (interest on cash or interest paid on cash revolver)with the balance sheet line item (excess cash or cash revolver). This will create a circular reference, which will help in calculating the interest received/interest paid once the numbers are inserted in the balance sheet.

For Dupont analysis we have just linked the required (selected) profit and loss and balance sheet line items and used the dupont formula to calculate the ROE (return on equity). The excel workbook is not password protect,you can check out how we have linked the line items and calculated the ROE.

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