Ratio Analysis - Most Comprehensive Guide (Excel Based)

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RATIO ANALYSIS MOST

COMPREHENSIVE GUIDE (EXCEL
BASED)
BY D H EERA J V A I D Y A 611 COMMENTS
F I L E D U N D E R : INVESTMENT BANKING , E Q U I T Y R E S E A R C H, F I N A N C I A L M O D E L I N G,
ACCOUNTING
Ratio Analysis This is the most comprehensive guide to Ratio Analysis / Financial
Statement Analysis
This expert-written guide goes beyond the usual gibberish and explore practical Financial
Statement Analysis as used by Investment Bankers and Equity Research Analysts.
Here I have taken Colgate case study and calculated Ratios in excel from scratch.
Please note that this Ratio Analysis guide is over 9000 words and took me 4 weeks to
complete. Do save this page for future reference and dont forget to share it
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You can use the following navigation to shortlist and learn the ratio analysis topic that you
want to focus. Additionally, you can directly lter the core concepts or application of ratio
analysis in Colgate Case Studies or choose to learn both simultaneously from the below.
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Vertical Analysis Horizontal Analysis Trend Analysis
I want to Learn Ratio Analysis
Solvency Ratio Operating Performance Risk Analysis
Growth Analysis
I want to learn the following
Concept Colgate Case Studies
Ratio Analysis / Financial Statement

Analysis Read me First
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Colgates SEC Filings from here.
Step 4 Happy Learning!

Ratio Analysis / Financial Statement
Analysis
I have made an easy navigation for you to learn Ratio Analysis.
What is Financial Statement Analysis / Ratio Analysis
Vertical Analysis or Common Size Statements
Horizontal Analysis
Trend Analysis
Ratio Analysis
Liquidity Ratio Analysis
Solvency Ratio Analysis
#1 Current Ratio Analysis
#2 Quick Ratio Analysis
#3 Cash Ratio Analysis
Turnover Ratios
#4 Receivables Turnover Ratio Analysis
#5 Days Receivables
#6 Inventory Turnover Ratio Analysis
#7 Days Inventory
#8 Accounts Payable Turnover Ratio Analysis
#9 Days Payable
#10 Cash Conversion Cycle
Ratio Analysis Operating Performance
Operating Eciency Ratio Analysis
#11 Asset Turnover Ratio Analysis
#12 Net Fixed Asset Turnover
#13 Equity Turnover
Operating Protability Ratio Analysis
#14 Gross Prot Margin

#15 Operating Prot Margin
#16 Net Margin
#17 Return on Total Assets
#18 Return on total equity
#19 Return on Equity or Return on Owners Equity
#20 Dupont ROE
Ratio Analysis Risk
Business Risk
# 21. Operating Leverage
# 22. Financial Risk Financial Leverage
# 23. Total Leverage
Financial Risk
# 24. Leverage Ratio or Debt to Equity Ratio Analysis
# 25. Interest Coverage Ratio Analysis
# 26. Debt Service Coverage Ratio (DSCR)
Ratio Analysis External Liquidity Risk
#27 Bid Ask Spread
#28 Trading Volume
Ratio Analysis Growth
#29 Sustainable Growth
What is Financial Statement Analysis /

Ratio Analysis?
The purpose of Financial Statement Analysis (Ratio Analysis) is to evaluate management
performance in Protability, Eciency and # Rhsk
Although nancial statement information is historical, it is used to project future
performance
Financial Statement Analysis (Ratio analysis) can be done using Three Methods
Vertical Analysis (also called as Common Size Statements Analysis) It
compares the each item of to the base case of the nancial statements. All income
statement items are expressed as percentage of Sales. Balance Sheet Items are
expressed as a percentage of Total Assets or Total Liabilities (please note Total
Assets = Total Liabilities)
Horizontal Analysis It compares the two nancial statements (income statement,
balance sheet) o determine the absolute change as well as percentage changes.
Ratio Analysis Puts important business variables into perspective by comparing it with
other numbers. It provides meaningful relationship between individual values in the
nancial statements.
So, which one is the best when it comes to Financial Statement Analysis?
Ofcourse, you cant pick and choose a single method as the best and ONLY method to do
the nancial statement analysis.
You need to do all THREE analysis in-order to get a complete picture of the
Company.
Let us look at each one of them one by one.
Vertical Analysis or Common Size

Statements
Vertical analysis is a technique used to identify where a company has applied its
resources and in what proportions those resources are distributed among the various
balance sheet and income statement accounts. The analysis determines the relative
weight of each account and its share in asset resources or revenue generation
VERTICAL ANALYSIS INCOME STATEMENT
On the income statement, vertical analysis is a universal tool for measuring the
rms relative performance from year to year in terms of cost and protability.
It should always be included as part of any nancial analysis. Here, percentages are
computed in relation to Sales which are considered to be 100%.
This vertical analysis eort in the income statement is often referred to as margin
analysis, since it yields the dierent margins in relation to sales.
It also helps us do the time series analysis ( how the margins has
increased/decreased over the years) and also helps in cross sectional analysis with
other comparable companies in the industry.
VERTICAL ANALYSIS OF INCOME STATEMENT: COLGATE CASE STUDY
For each year, Income Statement line items is divided by its respective years
Top Line (Net Sales) number.
For example, for Gross Prot, it is Gross Prot / Net Sales. Likewise for other
numbers
WHAT CAN WE INTERPRET WITH VERTICAL ANALYSIS OF COLGATE

PALMOLIVE
Vertical Ratio Analysis helps us with analyzing the historical trends.
Please note that from vertical analysis we only get to the point of asking the
right questions (identication of problems). However, we do not
get answers to our questions here.
In Colgate, we note that gross prot margin (Gross Prot / Net Sales) has
been in the range of 56%-59%. Why Fluctuating?
We also note that the Selling General and administrative expenses (SG&A)
has decreased from 36.1% in 2007 to 34.1% in the year ending 2015. Why?
Also, note that the operating income has dropped signicantly in 2015. Why?
Net income decreased substantially to less than 10%. Why?
Also, eective tax rates jumped to 44% in 2015 (from 2008 until 2014, it was
in the range of 32-33%). Why?
VERTICAL ANALYSIS BALANCE SHEET (COMMON SIZE

RATIO?)
Vertical Analysis on the Balance Sheet normalizes the Balance Sheet and expresses
each item in percentage of total assets/liabilities.
It helps us to understand how each item of the balance sheet has moved over the
years. For eg. Debt has increased or decreased?
It also helps in cross sectional analysis (comparing the balance sheet strength with
other comparable companies)
VERTICAL ANALYSIS OF BALANCE SHEET: COLGATE CASE STUDY
For each year, Balance Sheet line items is divided by its respective years Top
Assets (or Total Liabilities) number.
For example, for Accounts Receivables, we calculate as Receivables / Total
Assets. Likewise for other balance sheet items
INTERPRETATION OF COLGATES VERTICAL ANALYSIS
Cash and Cash equivalents has increased from 4.2% in 2007 and is currently
standing at 8.1% of the total assets. Why a built-up of cash?
Receivables has decreased from 16.6% in 2007 to 11.9% in 2015. Does this
mean a stricter credit policy terms?
Inventories has decreased too from 11.6% to 9.9% overall. Why?
What is included in other current assets? It shows a stead increase from
3.3% to 6.7% of the total assets over the last 9 years.
What is included in other assets? Why shows a uctuating trend?
On the liabilities side, there can be many observations we can highlight.
Accounts payable decreased continuously over the past 9 years and
currently stands at 9.3% of the total assets.
Why there has been a signicant jump in the Long Term Debt to 52,4% in
2015. For this we need to investigate this in the 10K?
Non controlling interests has also increased over the period of 9 years and is
now at 2.1%
Horizontal Analysis
Horizontal Ratio 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 dierent dates using currency with dierent purchasing
powers. In eect, 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 nancial analysis techniques. The focus is to look for
symptoms of problems that can be diagnosed using additional techniques. Lets look at
an example.
HORIZONTAL ANALYSIS OF COLGATES INCOME STATEMENT
We calculate the growth rate of each of the line items with respect to the previous
year.
For example, to nd growth rate of Net Sales of 2015, the formula is (Net Sales
2015 Net Sales 2014) / Net Sales 2014
WHAT CAN WE INTERPRET WITH HORIZONTAL ANALYSIS OF COLGATE
PALMOLIVE
The last two years Colgate has seen a dip in Net Sales gures. In 2015,
Colgate saw a de-growth of -7.2% in 2015. Why?
Cost of Sales, however, has decreased (positive from companys point of
view). Why is this so?
Net Income decreased in the last three years, with as much as 36.5%
delcine in 2015.
Trend Analysis
Trend Analysis compare the overall growth of key nancial statement line item over the
years from the base case.
For example, in case of Colgate, we assume that 2007 is the base case and analyze the
performance in Sales and Net prot over the years.
We note that Sales has increased by only 16.3% over a period of 8 years (2008-
2015).
We also note that the overall net prot has decreased by 20.3% over the 8 year
period.
Ratio Analysis
Ratio analysis is another tool that helps identify changes in a companys nancial
situation. A single ratio is not sucient to adequately judge the nancial situation of the
company. Several ratios must be analyzed together and compared with prior-year ratios,
or even with other companies in the same industry. This comparative aspect of ratio
analysis is extremely important in nancial analysis. It is important to note that ratios are
parameters and not precise or absolute measurements. Thus, ratios must be interpreted
cautiously to avoid erroneous conclusions. An analyst should attempt to get behind the
numbers, place them in their proper perspective and, if necessary, ask the right questions
for further clarication.
Solvency Ratio Analysis
Solvency Ratio Analysis are primarily sub-categorized into two parts Liquidity Ratio
Analysis and Turnover Ratio Analysis. They are further sub-divided into 10 ratios as seen
in the diagram below.
We will discuss each sub category one by one.
LIQUIDITY RATIOS
Liquidity ratio analysis measure how liquid the companys assets are (how easily can the
assets be converted into cash) as compared to its current liabilities. There are three
common liquidity ratio
1. Current ratio analysis
2. Acid test (or quick asset) ratio analysis
3. Cash Ratio analysis
#1 CURRENT RATIO ANALYSIS

WHAT IS CURRENT RATIO ANALYSIS?
Current ratio is the most frequently used ratio to measure companys liquidity as it is
quick, intuitive and easy measure to understand the relationship between the current
assets and current liabilities. It basically answers this question How many dollars in
current assets does the company have to cover each $ of current liabilities
Current Ratio Formula = Current Assets / Current Liabilities
Let us take a simple Current Ratio Calculation example,
Current Assets = $200 Current Liabilities = $100

Current Ratio = $200 / $100 = 2.0x
This implies that the company has two dollar of current assets for every one dollar
of current liabilities.
ANALYST INTERPRETATION OF CURRENT RATIO
Current ratio analysis provides us with a rough estimate that
whether the company would be able to survive for one year or not.
If Current Assets is greater than Current Liabilities, we interpret that
the company can liquidate its current assets and pay o its current
liabilities and survive atleast for one operating cycle.
Current Ratio analysis in itself does not provide us with full details of
the quality of current assets and whether they are fully realizable.
If the current assets consists primarily of receivables, we
should investigate the collectability of such receivables.
If current assets consists of large Inventories, then we should be
mindful of the fact that inventories will take longer to convert into
cash as they cannot be readily sold. Inventories are much less liquid
assets than receivables.

Average maturities of current assets and current liabilities should
also be looked into. If current liabilities mature in the next one
month, then current assets providing liquidity in 180 days may not
be of much use.
CURRENT RATIO ANALYSIS COLGATE CASE STUDY EXAMPLE
Let us now calculate the Current Ratios for Colgate.
Colgate has maintained a healthy current ratio of greater than 1 in the past
10 years.
Current ratio of Colgate for 2015 was at 1.24x. This implies that current
assets of Colgate are more than current liabilities of Colgate.
However, we still need to investigate on the quality and liquidity of Current
Assets. We note that around 45% of current assets in 2015 consists of
Inventories and Other Current Assets. This may aect the liquidity position
of Colgate.
When investigating Colgates inventory, we note that majority of the
Inventory consists of Finished Goods (which is better in liquidity than raw
materials supplies and work-in-progress).
source: Colgate 2015 10K Report, Pg 100
Below is a quick comparison of Current Ratio of Colgates vs P&G vs Unilever

source: ycharts
Colgates current Ratio as compared to its peer group (P&G and Unilever)
appears to be much better.
Unilever current ratio seems to be declining over the past 5 years. However,
P&G Current ratio has remained less than 1 in the past 10 years or so.
#2 QUICK RATIO ANALYSIS

WHAT IS QUICK RATIO?
Sometimes current assets may contain huge amounts of inventory, prepaid
expenses etc. This may skew the current ratio interpretations as these are not very
liquid.
To address this issue, if we consider the only most liquid assets like Cash and Cash
equivalents and Receivables, then it should provide us with a better picture on the
coverage of short term obligations.
This ratio is know as Quick Ratio or the Acid Test.
The rule of thumb for a healthy acid test index is 1.0.
Quick Ratio Formula = (Cash and Cash Equivalents + Accounts Receivables)/Current

Liabilities
Let us take a simple Quick Ratio Calculation example,
Cash and Cash Equivalents = $100

Accounts Receivables = $500
Current Liabilities = $1000
Then Quick Ratio = ($100 + $500) / $1000 = 0.6x
ANALYST INTERPRETATION
Accounts Receivables are more liquid than the inventories.
This is because Receivables directly convert into cash after the credit
period, however, Inventories are rst converted to Receivables which
in turn take further time to convert into cash.
In addition, there can be uncertainty related to the true value of the
inventory realized as some of it may become obsolete, prices may
change or it may become damaged.
It should be noted that a low quick ratio may not always mean
liquidity issues for the company. You may nd low quick ratios in
businesses that sell on cash basis (for example, restaurants,
supermarkets etc). In these businesses there are no receivables,
however, there maybe a huge pile of inventory.
QUICK RATIO ANALYSIS COLGATE CASE STUDY EXAMPLE
Let us now look at the Quick Ratio calculations in Colgate.
Quick Ratio of Colgate is relatively healthy (between 0.56x 0.73x). This acid test
shows us the companys ability to pay o short term liabilities using Receivables
and Cash & Cash Equivalents.
Below is a quick comparison of Quick Ratio analysis of Colgates vs P&G vs Unilever
source: ycharts
As compared to its Peers, Colgate has a very healthy quick ratio.
While, Unilevers Quick Ratio has been declining for the past 5-6 years, we also
note that P&G Quick ratio is much lower than that of Colgate.
#3 CASH RATIO ANALYSIS

WHAT IS CASH RATIO ANALYSIS?
Cash ratio considers only the Cash and Cash Equivalents (there are the most liquid assets
within the Current Assets). If the company has a higher cash ratio, it is more likely to be
able to pay its short term liabilities.
Cash Ratio Formula = Cash & Cash equivalents / Current Liabilities
Let us take a simple Cash Ratio Calculation example,
Cash and Cash Equivalents = $500

Current Liabilities = $1000
Then Quick Ratio = $500 / $1000 = 0.5x
All three ratios Current Ratios, Quick Ratios, and Cash Ratios should
be looked at for understanding the complete picture on Companys
liquidity position.
Cash Ratio analysis is the ultimate liquidity test. If this number is
large, we can obviously assume that the company has enough cash
in its bank to pay o its short term liabilities.

CASH RATIO COLGATE CASE STUDY EXAMPLE
Let us calculate Cash Ratios in Colgate.
Colgate has been maintaining a healthy cash ratio of 0.1x to 0.28x in the past 10
years. With this higher cash ratio, the company is in a better position to payo its
current liabilities.
Below is a quick comparison of Cash Ratio of Colgates vs P&G vs Unilever
source: ycharts
Colgates Cash ratio as compared to its peers seems to be much superior.
Unilevers Cash Ratio has been declining in the past 5-6 years.
P&G cash ratio has steadily improved over the past 3-4 years period.
Turnover Ratio Analysis
We saw from the above three liquidity ratios (Current, Quick and Cash Ratios) that it
answer the question Whether the company has enough liquid assets to square o its
current liabilities. So this ratio is all about the $ amounts.
However, when we look at Turnover ratio analysis, we try to analyze the liquidity from
how long it will take for the rm to convert inventory and receivables into cash or time
taken to pay its suppliers.
The commonly used turnover ratios include:
4) Receivables turnover
5) Accounts receivables days
6) Inventory turnover
7) Inventory days
8) Payables turnover
9) Payable days
10) Cash Conversion Cycle
#4 RECEIVABLES TURNOVER RATIO ANALYSIS

WHAT IS RECEIVABLES TURNOVER RATIO ANALYSIS?
Accounts Receivables Turnover Ratio can be calculated by dividing Credit Sales by
Accounts Receivables.
Intuitively. it provides us the number of times Accounts Receivables (Credit Sales) is
converted into Cash Sales
Accounts Receivables can be calculated for the full year or for a specic quarter.
For calculating accounts receivables for a quarter, one should take annualized sales
in the numerator.
Receivables Turnover Formula = Credit Sales / Accounts Receivables
Let us take a simple Receivables Turnover Calculation example,
Sales = $1000
Credit given is 80%
Accounts Receivables = $200
Credit Sales = 80% of $1000 = $800
Accounts Receivables Turnover = $800 / $200 = 4.0x
Please note that the Total Sales include Cash Sales + Credit Sales.
Only Credit Sales convert to Accounts Receivables, hence, we should
only take Credit Sales.

If a company sells most of its items on Cash Basis, then there will be
No Credit Sales.
Credit Sales gures may not be directly available in the annual
report. You may have to dig into the Management discussions to
understand this number.
If it is still hard to nd the percentage of credit sales, then do
have a look at conference calls where analysts question the
management on relevant business variables. Sometimes it is not
available at all.
ACCOUNTS RECEIVABLES COLGATE EXAMPLE
To calculate the receivables turnover, we have considered average
receivables. We consider the average gures as these are balance sheet
items.
For eg. as shown in the image below, we took the average receivables of
2014 and 2015.
Also, please note that I have taken the assumption that 100% of Colgates
Sales were Credit Sales.
We note that the Receivables Turnover was less than 10x in 2008-2010.
However, it improved signicantly in the past 8 years and is was closer to
11x in 2015.
Higher Receivables Turnover implies higher frequency of converting
receivables into cash (this is good!)

Below is a quick comparison of Receivables turnover of Colgate vs P&G vs Unilever
We note that P&G Receivable turnover ratio is slightly higher than Colgate.
Unilevers Receivables turnover is closer to that of Colgate.
source: ycharts
#5 DAYS RECEIVABLES
WHAT IS DAYS RECEIVABLES?
Days receivables is directly linked with the Accounts Receivables Turnover. Days
receivables expresses the same information but in terms of number of days in a year.
This provides with a intuitive measure of Receivables Collection Days
You may calculate Account Receivable days based on the year end balance sheet
numbers.
Many analysts, however, prefer to use the average balance sheet receivables number to
calculate the average collection period. (right way is to use the average balance sheet)
Accounts Receivables Days Formula = Number of Days in Year / Accounts Receivables

Turnover
Let us take the previous example and nd out the Days Receivables
Let us take a simple Days Receivables Calculation example,
Accounts Receivables Turnover = 4.0x

Number of days in a year = 365
Days Receivables = 365 / 4.0x = 91.25 days ~ 91 days
This implies that it takes 91 days for the company to convert Receivables into
Cash.
Number of days taken by most analysts is 365, however, some
analyst also use 360 as the number of days in the year. This is
normally done to simplify the calculations.
Accounts receivable days should be compared with the average
credit period oered by the company. For example in the above
case, if the Credit Period oered by the company is 120 days and
they are receiving cash in just 91 days, this implies that the company
is doing well to collect its receivables.
However, if the credit period oered is say 60 days, then you may
nd signicant amount of previous accounts receivables on the
balance sheet, which obviously is not good from companys point of
view.
DAYS RECEIVABLES COLGATE CASE STUDY EXAMPLE
Lets calculate Days Receivables for Colgate. To calculate Days Receivables,
we have taken 365 days assumption.
Since, we had already calculated receivables turnover above, we can easily
calculate the days receivables now.
Days receivables or Average Receivables collection days has decreased from
around 40 days in 2008 to 34 days in 2015.
This means that Colgate is doing a better job in collecting its receivables.
They may have started implementing a stricter credit policy.

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Asics
Rs 9,999
#6 INVENTORY TURNOVER RATIO ANALYSIS

WHAT IS INVENTORY TURNOVER RATIO ANALYSIS?
Inventory Ratio means how many times the inventories are restored during the year. It
can be calculated by taking Cost of Goods Sold and dividing by
Inventory.Inventory Turnover Formula = Cost of Goods Sold / Inventory
Let us take a simple Inventory Turnover Ratio Calculation example.
Cost of Goods Sold = $500

Inventory = $100
Inventory Turnover Ratio = $500 / $100 = 5.0x
This implies that during the year, inventory is used up 5 times and is restored to its
original levels.
You may note that when we calculate receivables turnover, we took Sales (Credit Sales),
however, in inventory turnover ratio, we took Cost of Goods Sold. Why?
The reason is that when we think about receivables, it directly comes from Sales made on
the credit basis. However, Cost of Goods sold is directly related to inventory and is carried
on the balance sheet at cost.
To get an intuitive understanding of this, you may see the BASE equation.
B+A=S+E
B = Beginning Inventory
A = Addition to Inventory (purchases during the year)
S = Cost of Goods sold
E = Ending Inventory
S =B+AE
As we note from the above equation, Inventory is directly related to Cost of Goods Sold.
INVENTORY TURNOVER RATIO COLGATE CASE STUDY

EXAMPLE
Let us calculate Inventory Turnover Ratio of Colgate. Like in receivables
turnover, we take the average inventory for calculating Inventory Turnovers.
Colgates inventory consists of Raw material and supplies, work in progress
and nished goods.
Colgates inventory turnover has been in the range of 5x-6x.
In the last 3 years, Colgate has seen a lower inventory turnover ratio. This
means that Colgate is taking longer to process its inventory to nished
goods.
#7 DAYS INVENTORY
WHAT IS DAYS INVENTORY?
We calculated Inventory Turnover Ratio earlier. However, most analyst prefer calculating
inventory days. This is obviously the same information but more intuitive. Think of
Inventory Days as the approximate number of days it takes for inventory to convert into
nished product.
Inventory Days Formula = Number of days in a year / Inventory Turnover.
Let us take a simple Days Inventory Calculation example. We will use
the previous example of Inventory Turnover Ratio and calculate Inventory Days.

Inventory = $100
Inventory Turnover Ratio = $500 / $100 = 5.0x
Inventory Days = 365/5 = 73 days.
This implies that Inventory is used up every 73 days on an average and is restored
to its original levels.
You may also think of inventory days as the number of days a
company can continue with production without replenishing its
inventory.
One should also look at the seasonality patter in how inventory is
consumed depending on the demand. It is rare that inventory is
consumed constantly throughout the year.
INVENTORY DAYS COLGATE CASE STUDY EXAMPLE
Let us calculate the Inventory turnover days for Colgate. Inventory Days for
Colgate = 365 / Inventory Turnover.
We see that inventory processing period has increased from 64.5 days in
2008 to around 70.5 days in 2015.
This implies that Colgate is processing its inventory a bit slowly as compared
to 2008.
#8 ACCOUNTS PAYABLE TURNOVER
WHAT IS ACCOUNTS PAYABLE TURNOVER?
Payables turnover indicates the number of times that payables are rotated during the
period. It is best measured against purchases, since purchases generate accounts

payable.
Payables Turnover Formula = Purchases / Accounts Payables
Let us take a simple Accounts Payable Turnover calculation example. From the Balance
Sheet, you are provided with the following
Ending Inventory = $500

Beginning Inventory = $200
Accounts Payable = $200
In this example, we need to rst nd out Purchases during the year. If you
remember the BASE equation that we used earlier, we can easily nd purchases.
B+A=S+E
B = Beginning Inventory
A = Additions or Purchases during the year
S = COGS
E = Ending Inventory
we get, A = S + E B
Purchases or A = $500 + $500 $200 = $800
Payables Turnover = $800 / $200 = 4.0x
Some analysts make a mistake of taking Cost of Goods Sold in the
numerator of this accounts payable turnover formula.
It is important to note here that Purchase is the one that leads to
Payables.
We earlier saw Sales can be Cash Sales and Credit sales. Likewise,
Purchases can be Cash Purchases as well Credit Purchases. Cash
Purchases does not results in payables, it is only the Credit

Purchases that leads to Accounts payables.
Ideally, we should seek for Credit Purchases information from the
annual report.
ACCOUNTS PAYABLE TURNOVER COLGATE CASE STUDY

EXAMPLE
In Colgates case study, we rst nd the Purchases. Purchases 2015 = COGS 2015 +
Inventory 2015 Inventory 2014
Once we have the purchases, we can now nd the payables turnover. Please note
that we use the average accounts payable to calculate the ratio.
We note that Payable turnover has decreased to 5.50x in 2015. This implies that
Colgate is taking a bit longer to make payment to its suppliers.
#9 DAYS PAYABLE RATIO ANALYSIS

WHAT IS DAYS PAYABLE RATIO ANALYSIS?
Like with all the other turnover ratios, most analyst prefer to calculate much intuitive Days
payable. Payable days represent the average number of days a company takes to make
the payment to its suppliers.
Payables Days Formula = Number of Days in a year / Payables Turnover

Lets take a simple Payable Days calculation example. We will use the previous example of
Accounts Payable Turnover to nd the Payable days
We earlier calculated Accounts Payable Turnover as 4.0x

Payable Days = 365 / 4 = 91.25 ~ 91 days
This implies that the company pays its clients every 91 days.
Higher the accounts payable days, better it is for the company from
liquidity point of view.
Payable days can be aected by seasonality in the business.
Sometimes business may stock inventories due to
upcoming business cycle. This may distort the interpretations that
we make on payable days if we are not aware of seasonality.
ACCOUNTS PAYABLE RATIO ANALYSIS COLGATE CASE STUDY

EXAMPLE
Let us calculate Accounts Payable for Colgate. Since, we have already calculated
the Payables Turnover, we can calculate Payable days = 365/Payables Turnover.
Payable days have been constant at around 66 days for the past 3 years. This
means that Colgate takes around 66 days for paying its suppliers.
#10 CASH CONVERSION CYCLE
WHAT IS CASH CONVERSION CYCLE?
Cash conversion cycle is the total time taken by the rm to convert its cash outows into
cash inows (returns). Think of Cash Conversion Cycle as time taken by a company to
purchase the raw materials, then convert inventory into nished product and sell the
product and receive cash and then make the necessary payout for the purchases.
Cash Conversion cycle depends primarily on three variables Receivable Days, Inventory
Days and Payable Days.
Cash Conversion Cycle Formula = Receivable Days + Inventory Days Payable

Days
Let us take a simple Cash Conversion Cycle calculation example,
Receivable Days = 100 days

Inventory Days = 60 days
Payable Days = 30 days
Cash conversion cycle = 100 + 60 30 = 130 days.
ANALYST INTERPRETATION OF CASH CONVERSION
It signies the number of days rms cash is stuck in the operations
of the business.
Higher cash conversion cycle means that it takes longer time for the
rm to generate cash returns.

However, a lower cash conversion cycle may be viewed as a healthy
company.
Also, one should compare the cash conversion cycle with the
industry averages so that we are in a better position to comment on
higher/lower side of cash conversion cycle.
CASH CONVERSION CYCLE COLGATE CASE STUDY

EXAMPLE
Cash Conversion Cycle of colgate = Receivable Days + Inventory Days
Payable Days
Overall, we note that the cash collection cycle has decreased from around 46
days in 2008 to 38 days in 2015.
This implies that overall Colgate is improving its cash conversion cycle with
each year.
We note that the receivables collection period has decreased overall that has
contributed to the decrease in cash conversion cycle.
Additionally, we also note that the average payable days has increased,
which again positively contributed to the cash conversion cycle.
However, the increase in inventory processing days in the recent years has
negatively aected its cash conversion cycle.
Ratio Analysis Operating Performance

Operating performance ratios try and measure how the business is performing at the
ground level and is suciency generating returns relative to the assets deployed.
Operating Performance Ratios are two sub-divided as per the diagram below
Operating Efficiency Ratios
#11 ASSET TURNOVER RATIO ANALYSIS
WHAT IS ASSET TURNOVER RATIO ANALYSIS?

The asset turnover ratio is a comparison of sales to total assets. This ratio provides with
an indication on how eciently the assets are being utilized to generate sales.
Asset Turnover Formula = Total Sales / Assets
Let us take a simple Cash Conversion Cycle calculation example.
Sales of Company A = $900 million

Total Assets = $1.8 billion
Asset Turnover = $900/$1800 = 0.5x
This implies that for every $1 of assets, the company is generating $0.5
Asset turnovers can be extremely low or very high depending on the
Industry they operate in.
Asset turnover of Manufacturing rm will be on the lower side due to

large asset base as compared to a companies that operates in the
services sector (lower assets).
If the rm has seen considerable growth in assets during the year or
the growth has been seasonal, then the analyst should nd
additional information to interpret such numbers.
ASSET TURNOVER RATIO ANALYSIS COLGATE CASE STUDY

EXAMPLE
Asset Turnover of Colgate = Sales / Average Assets

We note that the Asset Turnover for Colgate is showing a declining trend. Asset
turnover was at 1.53x in 2008, however, each year this ratio has sequentially
decreased (1.26x in 2015).
#12 NET FIXED ASSET TURNOVER
WHAT IS NET FIXED ASSET TURNOVER?
Net Fixed Asset turnover reects utilization of xed assets (Property Plant and
Equipment).
Net Fixed Asset Turnover Formula = Total Sales / Net Fixed Assets
Let us take a simple Net Fixed Asset Turnover calculation example.

Total Sales = $600
Net Fixed Assets = $600
Net Fixed Asset Turnover = $600 / $600 = 1.0x
This implies that for every $ spent on the xed assets, the company is able to
generate $1.0 in revenues.
This ratio should be applied to high capital intensive sectors like
Automobile, Manufacturing, Metals etc.
You should not apply this ratio to asset light companies like Services
or Internet based as the Net Fixed assets will be really low and not
meaningful from analysis point of view.
This number can look temporarily bad if the rm has recently added
greatly to its capacity in anticipation of future sales
NET FIXED ASSET TURNOVER COLGATE CASE STUDY

EXAMPLE
Net Fixed Asset Turnover of Colgate = Sales / Average Net Fixed Assets (PPE, net)
Like the Asset Turnover, Net Fixed asset turnover is also showing a declining trend.
Net Fixed Asset turnover was at 5.0x in 2008, however, this ratio has reduced to
4.07x in 2015.
#13 EQUITY TURNOVER
WHAT IS EQUITY TURNOVER?

Equity turnover is the ratio of Total Revenue to the Shareholders Equity Capital. This ratio
measures how eciency the company is deploying equity to generate sales.
Equity Turnover Ratio Formula = Total Sales / Shareholders Equity
Let us take a simple Equity Turnover calculation example,
Total Sales = $600

Shareholders Equity = $300
Equity Turnover Ratio = $600 / $300 = 2.0x.
This implies that company is generating $2.0 of sales for every $1.0 of
shareholders equity.
EQUITY TURNOVER COLGATE CASE STUDY EXAMPLE
Colgate Equity Turnover = Sales / average Shareholders Equity
We note that historically, Colgates Equity Turnover has been in the range of 6x-7x.
However, it jumped to 37.91x in 2015.
This was primarily due to two reasons a) Share buy back program of Colgate
resulting in lowering of Equity base each year. b) Accumulated losses net of taxes
(these are those losses that dont ow into the income statement).
OPERATING PROFITABILITY RATIOS

Operating Performance Ratios measure how much are the costs relative to the sales and
how much prot is generated in the overall business. We try to answer questions like
how much the prot percentage or Is the rm controlling its expenses by buying
inventory etc at a reasonable price?
#14 GROSS PROFIT MARGIN
WHAT IS GROSS PROFIT MARGIN?
Gross Prot is the dierence between Sales and the direct cost of making a product or
providing service. Please note that costs like overheads, taxes, interests are not deducted
here.
Gross Margin Formula = (Sales Costs of Goods Sold)/Sales = Gross Prot / Sales
Let us take a simple Gross Margin calculation example,
Assume from the Sales of a rm is $1,000 ands its COGS is $600

Gross Prot = $1000 $600 = $400
Gross Prot Margin = $400/$1000 = 40%
Gross Margin can vary drastically between industries. For example,
digital products sold online will have extremely high Gross Margin as
compared to a company that sells Laptop.
Gross margin is extremely useful when we look at the historical
trends in the margins. If the Gross Margins has increased historically,
then it could be either because of price increase or control of direct
costs. However, if the Gross margins show a declining trend, then it
may be because of increased competitiveness and
therefore resulting in decreased sales price.
In some companies, Depreciation expenses are also included in
Direct Costs. This is incorrect and should be shown below the
Gross Prot in the Income Statement.
GROSS MARGINS COLGATE CASE STUDY EXAMPLE
Let us calculate Colgates Gross Margin. Colgates Gross Margin = Gross Prot / Net
Sales.
Please note that depreciation related to manufacturing operations are included

here in Cost of Operations (Colgate 10K 2015, pg 63)
Shipping and handling costs may be reported either in Cost of Sales or Selling
General and Admin Expenses. Colgate has however, reported these costs as a part
of Selling General and Admin Expenses. If such expenses are included in Cost of
Sales, then the Gross margin of colgate would have decreased by 770 bps from
58.6% to 50.9% and decreased by 770bps and 750 bps in 2014 and 2013
respectively.
source: Colgate 10K 2015, pg 46
#15 OPERATING PROFIT MARGIN
WHAT IS OPERATING PROFIT MARGIN?
Operating prot or Earnings Before Interest and Taxes (EBIT) margin measures the rate of
prot on sales after operating expenses. Operating income can be thought of as the
bottom line from operations.Operating Prot Margin = EBIT / Sales
Let us take a simple Operating Prot Margin calculation example,
We will use the previous example.

Assume from the Sales of a rm is $1,000 ands its COGS is $600
SG&A expense = $100
Depreciation and Amortization = $50
EBIT = Gross Prot SG&A D&A = $400 $100 $50 = $250
EBIT Margin = $250/$1000 = 25%
Please note that some analyst take EBITDA (Earning before interest
taxes depreciation and amortization) instead of EBIT as Operating
Prot. If this is so, they assume that depreciation and amortization
are non-operating expenses.
Most analyst prefer taking EBIT as Operating Prot. Operating Prot
Margin is most commonly tracked by analysts
You need to be mindful of the fact that many companies include non
recurring items (gains/losses) in SG&A or other expenses above EBIT.
This may increase or decrease the EBIT Margins and skew your
historical analysis.
Operating Prot Margin Colgate Case Study Example
Colgates Operating Prot = EBIT / Net Sales
Historically, Colgates Operating Prot has remained in the range of 20%-23%
However, in 2015, Colgates EBIT Margin decreased signicantly to 17.4%. This was
primarily due to change in accounting terms for CP Venezuela entity (as explained
below)
Colgate derives more than 75% income from outside of United States. The
company is exposed to changes in economic conditions, exchange rates
volatilities and political uncertainty in some countries.
Once such country has been Venezuela, where operating environment has
been very challenging for Colgate and economic uncertainty due to
wide exchange rate devaluations. Additionally, due to price controls, Colgate
has restricted ability to implement price increases without governmental
approval.
Colgates ability to generate income continue to be negatively aected by
these dicult geo-political conditions.
As a result, eective from December 31st, 2015, Colgate is no longer
including the results of CP Venezuela in its consolidated income statement
and began accounting of its CP Venezuela entity using Cost method of
accounting. As a result, the company has taken pre-tax charge of $1.084
billion in 2015.
This has resulting in decrease of Operating Margin of Colgate in 2015.
#16 NET MARGIN
WHAT IS NET MARGIN?
Net Margin is basically the net eect of operating as well as nancing decisions taken by
the company. It is call as Net Margin because in the numerator we have Net Income (Net
of all the operating expenses, interest expenses as well as taxes)
Net Margin Formula = Net Income / Sales
Let us take a simple Net Margin calculation example, Continuing with our previous
example, EBIT = $250, Sales = $1000.
We now assume that interest is $100 and taxes is charges at the rate of 30%.EBIT =
$250
Interest = $100
EBT = $150
Taxes = $45
Net Prot = $105
Net Prot Margin = $105/$1000 = 10.5%
Like Gross margins, Net Margins can also vary drastically across
industries. For example Retail is a very low margin business (~5%)
whereas a website selling digital products may have Net Prot
Margin in excess of 40%.
Net Margins is useful for comparison between companies within the
same industry due to similar product and cost structure.
Net Prot Margins can vary historically due to presence of non
recurring items or non operating items.
NET MARGIN COLGATE CASE STUDY EXAMPLE
Let us have a look at the Net Margin of Colgate.
Historically, Net Margin for Colgate has been in the range of 12.5% 15%.
However, it decreased substantially in 2015 to 8.6% primarily due to CP
Venezuela Accounting changes (reasons described in EBIT margin
discussion).
#17 RETURN ON TOTAL ASSETS
WHAT IS RETURN ON TOTAL ASSETS?
Return on Assets or Return on Total Assets relates to the rms earnings to all capital
invested in the business.
Two important things to note there
Please note that in the denominator, we have Total Assets which basically takes care
of both the Debt and Equity Holders.
Likewise in the numerator, the Earnings should reect something that is before the
payment of interest.
Return on Total Asset Formula = EBIT / Total Assets.
Let us take a simple Return on Total example,
Company A has an EBIT of $500 and Total Assets = $2000

Return on Total Assets = $500/$2000 = 25%
This implies that the company is generating a Return on Total Assets of 25%.
Many analysts use the numerator as Net Income + Interest Expenses
instead of EBIT. They basically are deducting the taxes.

Return on Assets can be low or high depending on the type of
industry. If the company operates in a capital intensive sector (Asset
heavy), then the return on assets may be on the lower side. However,
if the company is Asset Light (services or internet company), they
tend to have have a higher Return on Assets.
RETURN ON TOTAL ASSETS COLGATES CASE STUDY

EXAMPLE
Let us now calculate the Return on total Assets of Colgate. Colgates Return On
Total Assets = EBIT / Average total assets
Colgates Return on total assets have been declining since 2010. Most recently, it
has declined to its lowest to 21.9%. Why?
Lets investigate.
Two reasons can contribute to decrease either the denominator i.e. average
assets have increased signicantly or the Numerator Net Sales have dropped
signicantly.
In Colgates case, the total assets have infact decreased in 2015. This leaves us to
look at the Net Sales gure.
We note that the overall Net sales has decreased by as much as 7% in 2015.
We note that the primary reason for sales decrease for the negative impact due to
foreign exchange of 11.5%.
Organic sales of colgate has however increased by 5% in 2015.
#18 RETURN ON TOTAL EQUITY

WHAT IS RETURN ON TOTAL EQUITY?
Return on Total Equity means the rate of return earned on the Total Equity of the rm.
Can be thought of dollar prots a company generates on each dollar investment of Total
Equity.Please note Total Equity = Ordinary Capital + Reserves + Preference +
MinorityInterests
Return on Total Equity Formula = Net Income / Total Equity
Let us take a simple Return on Total Equity example.
Net Income = $50

Total Equity = $500
Return on Total Equity = $50/$500 = 10%
Return on total equity is 10%
Please note that the Net income will be before the preference
dividends and minority interest are paid.
Higher Return on Total Equity implies higher return to
the Stakeholders.
RETURN ON TOTAL EQUITY COLGATE CASE STUDY EXAMPLE
Colgates Return on Total Equity = Net Income (before pref dividends &
minority interest) / average total equity.
Please do remember to take the Net income before minority interest
payments in colgate. This is because we are using the total equity (including
the non controlling assets).
We note that the Return on Total Equity has jumped to 230.9%. This is
despite the fact that the Net Income has decreased 34% in 2015.
This result is somehow not making much sense here and cannot be
interpreted as the Return On total Equity that will continue in the future.
Return on Total Equity has jumped primarily due to decrease in denominator
Shareholders equity (increase in treasury stock because of buy back and
also because of accumulated losses that ow through the Shareholders
Equity)
#19 RETURN ON EQUITY OR RETURN ON

OWNERS EQUITY
WHAT IS ROE?
Return on equity or Return on Owners Equity is based only on the common shareholders
equity. Preferred dividends and minority interests are deducted from Net Income as they
are a priority claim.Return on equity provides us with the Rate of return earned on the
Common Shareholders Equity.
ROE or Return on Equity Formula = Net Income (after pref dividends and minority
interest) / Common Shareholders Equity
Let us take a simple ROE calculation example,
Net Income = $50

Total Equity = $500
ROE (owners) = $50 / $400 = 12.5%
ROE of the company is 12.5%
Since common shareholders equity is a year end number, some
analyst prefer taking the average shareholders equity (average
of beginning and year end)
ROE can be basically considered as protability ratio from
shareholders point of view. This provides how much returns on
generated from shareholders investments, not from the overall
company investments in assets. (Please note Total Investments =
Shareholders Equity + Liability that includes Current Liabilities
and Long term Liabilities)
ROE should be analyzed over a period of time (5 to 10 year period) in
order to get a better picture of the growth of the company. Higher

ROE does not get passed directly to the shareholders. Higher ROE ->
Higher Stock Prices.
ROE CALCULATION COLGATE CASE STUDY EXAMPLE
Like the Return on Total Equity, Return on Equity has jumped signicantly to
327.2% in 2015.
This has happened despite 34% decrease in the Net Income in 2015.
Return on Equity also jumped because of the decrease in Shareholders Equity
because of the much lower base in 2015. (reasons as discussed earlier in Return
on Total Equity).
#20 DUPONT ROE
WHAT IS DUPONT ROE?
Dupont ROE is nothing but an extended way of writing an ROE formula. It divides ROE into
several ratios that collectively equal ROE while individually providing insight to most
important term in ratio analysis.
Dupont ROE formula

= (Net Income / Sales) x (Sales / Total Assets) x (Total Assets / Shareholders Equity)
The above formula is nothing but the ROE formula = Net Income / Shareholders Equity
Let us take a simple Dupont ROE calculation example.
Net Income = $50

Sales = $500
Total Assets = $200
Gross Margin = Net Income / Sales = $50 / $500 = 10%
Asset Turnover = Sales / Total Assets = $500/$200 = 2.5x
Asset Leverage = Total Asset / Shareholders Equity = $200 / $400 = 0.5
Dupont ROE = 10% x 2.5 x 0.5 = 12.5%
Dupont ROE formula provides with with additional ways to analyze
the ROE ratio and helps us nd out reason to the nal number.
The rst term (Net Income/Sales) is nothing but the Net Prot
Margin. We know that Retail sector operates on low prot margin,
however, software product based company may operating on high
prot margin.
The second term here is (Sales/Total Assets), we normally call this
term as Asset turnovers. It provides us with a measure of how
eciently the assets are being utilized.
The third term here is (Total Assets / Shareholders Equity), we call
this ratio as Asset Leverage. Asset leverage gives insight into how the
company may be able to nance the purchase of new assets. A
higher Asset leverage does not mean that it is better than the low
multiplier. We need to look at the nancial health of the company by
performing full ratio analysis.

DUPONT ROE COLGATE CASE STUDY EXAMPLE
Colgate Dupont ROE = (Net Income / Sales) x (Sales / Total Assets) x (Total Assets /
Shareholders Equity)
Please note that the Net Income is after the minority shareholders payment.
Also, the shareholders equity consists of only the common shareholders of
Colgate.
We note that the asset turnover has shown a declining trend over the past 7-8
years.
Protability has also declined over the past 5-6 years
However, ROE has not shown a declining trend. It is increasing overall. This is
because of the Financial Leverage (average total assets / average total equity). You
will note that the Financial Leverage has shown a stead increase over the past 5
years and is currently standing at 30x.
RATIO ANALYSIS RISK
Risk analysis examines the uncertainty of income for the rm and for an investor
Total rm risks can be decomposed into three basic sources 1) Business risk 2) Financial
Risk 3) External Liquidity Risk
Business Risk
Wikipdedia denes as the possibility a company will have lower than anticipated prots
or experience a loss rather than taking a prot. If you look at the income statement,
there are many line items that contribute to the risk of making losses. In this context, we
discus three kinds of business risks Total Leverage, Operating leverage and Financial
Leverage.
# 21. OPERATING LEVERAGE
WHAT IS OPERATING LEVERAGE?

Operating leverage is the percentage change in operating prot relative to
sales.Operating leverage is a measure of how sensitive the operating income is to the
change in revenues.
Please note that greater use of xed costs, greater the impact of a change in sales on the
operating income of a company.
Operating Leverage Formula = % change in EBIT / % change in Sales.
Let us take a simple Operating Leverage calculation example.
Sales 2015 = $500, EBIT 2015 = $200

Sales 2014 = $400, EBIT 2014 = $150
% change in EBIT = ($200-$150)/$100 = 50%
% change in Sales = ($500-$400)/$400 = 25%
Operating Leverage = 50/25 = 2.0x
This means that for Operating prot changes by 2% for every 1% change in Sales.
Greater the xed costs, higher is the operating leverage.
Between ve to ten years of data should be used for
calculating Operating Leverages

OPERATING LEVERAGE COLGATE CASE STUDY EXAMPLE
Colgates Operating Leverage = % change in EBIT / % change in Sales
I have calculated the operating leverages for each year from 2008 2015.
Colgates operating leverage is very volatile as it ranges from 1x to 5x
(excluding the year of 2009 where sales growth was almost 0%).
It is expected that Colgates Operating leverage to be higher as we note
that Colgate has made signicant investments in Property, plant and
equipment as well as intangible assets. Both these long term assets account
for more than 40% of the total assets.
# 22. FINANCIAL LEVERAGE
WHAT IS FINANCIAL LEVERAGE?
Financial leverage is the percentage change in Net prot relative to Operating
Prot. Financial leverage measures how sensitive the Net Income is to the change in
Operating Income.Financial leverage primarily originates from companys nancing
decisions (usage of debt). Like in the operating leverage, xed assets leads to higher
operating leverage. In Financial leverage, the usage of debt primarily increases the
nancial risk as they need to payo interest
Financial Leverage formula = % change in Net Income / % change in EBIT
Let us take a simple Financial Leverage calculation example,

Net Income 2015 = $120, EBIT 2015 = $200
Net Income 2014 = $40, EBIT 2014 = $150
% change in EBIT = ($200-$150)/$100 = 50%
% change in Net Income = ($120-$40)/$40 = 200%
Financial Leverage = 200/50 = 4.0x
This means that for Net Income changes by 4% for every 1% change in Operating
Prot.
Greater the Debt, higher is the Financial leverage.
Between ve to ten years of data should be used for calculating
Financial Leverages
COLGATE CASE STUDY
Colgates Financial Leverage has been relatively stable between 0.90x 1.69x
(excluding the 2014 nancial leverage number)
# 23. TOTAL LEVERAGE
WHAT IS TOTAL LEVERAGE?

Total leverage is the percentage change in Net prot relative to its Sales. Total leverage
measures how sensitive the Net Income is to the change in Sales.

Total Leverage Formula = % change in Net Prot / % change in Sales
= Operating Leverage x Financial Leverage
Let us take a simple Total Leverage calculation example,
Sales 2015 = $500, EBIT 2015 = $200, Net Income 2015 = $120
Sales 2014 = $400, EBIT 2014 = $150, Net Income 2014 = $40
% change in Sales = ($500-$400)/$400 = 25%
% change in EBIT = ($200-$150)/$100 = 50%
% change in Net Income = ($120-$40)/$40 = 200%
Total Leverage = % change in Net Income / % change in Sales =200/25 = 8x.
Total Leverage = Operating Leverage x Financial Leverage = 2 x 4 = 8x (Operating
and Financial Leverage calculated earlier)
This implies for every 1% change in Sales, the Net Prot moves by 8%.
Higher sensitivity could be because of higher operating leverage (higher
xed cost) and higher nancial leverage (higher debt)5-10 years of data
should be taken to calculate the total leverage.
TOTAL LEVERAGE COLGATE CASE STUDY EXAMPLE
Let us now look at the Total Leverage of Colgate.

Colgates Operating leverage is higher as we note that Colgate has made
signicant investments in Property, plant and equipment as well as
intangible assets.
However, Colgates Financial Leverage is pretty stable.
Financial Risk
Financial risk is the type of risk primarily associated with the risk of default on the
company loan. We discuss 3 types of nancial risk ratios Leverage Ratio, Interest
Coverage Ratio and DSCR ratio.
# 24. LEVERAGE RATIO OR DEBT TO EQUITY

RATIO
WHAT IS LEVERAGE RATIO?
How much debt does the rm employ in relation to its use of equity? This is an important
ratio for bankers as it provides companys ability to pay o debt using its own capital.
Generally lower the ratio better it is.Debt includes current debt + long term debt
Leverage Ratio Formula = Total Debt (current + long term) / Shareholders Equity
Let us take a simple Leverage Ratio calculation example.
Current Debt = $100

Long Term Debt = $900
Leverage Ratio = ($100 + $900) / $500 = 2.0x
A lower ratio is generally considered better as it shows greater asset
coverage of liabilities with own capital.
Capital intensive sectors generally show a higher debt to equity ratio
(leverage ratio) as compared to services sector.
If the leverage ratio is increasing over time, then it may be concluded
that the rm is unable to generate sucient cash ows from its core
operations and is relying on external debt to stay aoat.
LEVERAGE RATIO COLGATE CASE STUDY EXAMPLE
Leverage Ratio of Colgate = (Current portion of long term debt + Long term Debt) /
Shareholders Equity.
We note that the leverage ratio has been increasing since 2009. The Debt to Equity
has increased from 0.98x in 2009 to 4.44x in 2014. Also, please note that the
Equity Capital for 2015 was negative and hence, the ratio was not calculated.
We note that the Debt Ratio in 2014 was at 0.80.
Leverage ratio has been increasing due to two reasons

Shareholders equity is decreasing steadily over the years due to buy back of
shares as well as accumulated losses that ow to the Shareholders Equity.
Additionally, we note that Colgate has been systematically increasing debt to
support its capital structure strategy objectives to funds its business and growth
initiatives, as well as to minimize its risk adjust weighted average cost of capital.
Colgate 10K, 2015 (pg 41)
# 25. INTEREST COVERAGE RATIO
WHAT IS INTEREST COVERAGE RATIO?
This ratio signies the ability of the rm to pay interest on the assumed debt.
Interest Coverage Formula = EBITDA / Interest Expense
Please note that EBITDA = EBIT + Depreciation & Amortization
Let us take a simple Interest Coverage Ratio calculation example,
EBIT = $500
Depreciation and Amortization = $100
Interest Expense = $50
EBITDA = $500 + $100 = $600
Interest Coverage Ratio = $600 / $50 = 12.0x
Capital intensive rms have higher depreciation and amortization
resulting in lower operating prot (EBIT)
In such cases, EBITDA is one of the most important measure as it is
the amount available to payo interest (depreciation and
amortization is non cash expense).

Higher interest coverage ratios implies greater ability of the rm to
payo its interests.
If Interest coverage is less than 1, then EBITDA is not sucient to
payo interest, which implies nding other ways to arrange funds.
INTEREST COVERAGE RATIO COLGATE CASE STUDY EXAMPLE
Colgates Interest Coverage Ratio = EBITDA / Interest Expense.

Please note that depreciation and amortization expenses are not provided in the
income statement. These were taken from the Cash Flow statements.
Also, Interest expense shown in the Income Statement is the net number (Interest
Expense Interest Income)
Colgate has a very healthy Interest coverage ratio. More than 100x in the past two
years.
We also note that in 2013, the Net Interest Expense was negative. Hence the ratio
was not calculated.
# 26. DEBT SERVICE COVERAGE RATIO (DSCR)
WHAT IS DSCR?
Debt Service Coverage Ratio tells us whether the Operating Income is sucient to payo
all obligations that are related to debt in an year. It also includes committed lease
payments.Debt servicing consists of not only the interest, but also some principal portion
also is repaid annually.

Debt Service Coverage Formula = Operating Income / Debt Service
Operating Income is nothing but EBIT
Debt Service is Principal Payments + Interest Payments + Lease Payments
Let us take a simple DSCR calculation example,
EBIT = $500
Pricipal Payment = $125
Interest Payment = $50
Lease Payments = $25
Debt Service = $125 + $50 + %25 = $200
DSCR = EBIT / Debt Service = $500/$200 = 2.5x
A DSCR of less than 1.0 implies that the operating cash ows are not
sucient enough for Debt Servicing implying negative cash ows.
This is pretty useful matrix from Banks point of view, especially when
they give loans against property to individuals
DSCR COLGATES CASE STUDY EXAMPLE

Colgates Debt Service Coverage Ratio = Operating Income / Debt Service
Debt Service = Principal Repayment of Debt + Interest Payment + Lease
Obligations
For Colgate, we get the Debt service obligations from its 10K reports.
Colgate 10K 2015, pg 43.

Please note that you get the forecast of the Debt Service in the 10K reports.
For nding out the historical Debt Service Payments, you need to refer to the 10Ks
prior to 2015.
As noted from the graph below, we see that the Debt Service Coverage Ratio or
DSCR for Colgate is health at around 2.78.
However, the DSCR has deteriorated a bit in the recent past.
You can click here for a detailed indepth article on DSCR Ratio
Ratio Analysis External Liquidity Risk
#27 BID ASK SPREAD
WHAT IS BID ASK SPREAD?
Bid Ask Spread is a very important parameter that helps us understand how the stock
prices gets aected with purchase or sale of stocks. Bid is the highest price that the buyer
is willing to pay
Ask is the lowest price at which the seller is willing to sell.
Let us take a simple Bid Ask Spread calculation example.

If the bid price is $75 and the ask price is $80, then the bid-ask spread is the the
dierence between the ask price and the bid price.$80 $75 = $5.
External market liquidity is an important source of risk to investors.
If the bid-ask spread is low, then the investors are able to buy or sell
assets with little price changes.
Also, another factor of external market liquidity is the dollar value of
shares traded
EXTERNAL LIQUIDITY RISK COLGATE CASE STUDY EXAMPLE
Let us look at Colgate Bid Ask Spread.

As we note from the below snapshot, Bid = 74.12 and Ask = $74.35
Bid Ask Spread = 74.35 74.12 = 0.23
source
: Yahoo Finance
#28 TRADING VOLUME
WHAT IS TRADING VOLUME?

Trading volume refers to the average number of shares traded in a day or over a period
of time. When the average trading volume is high, this implies that the stock has high
liquidity (can be easily traded). Numerous buyers and sellers provide liquidity.
Let us take a simple Trading Volume example.
There are two companies Company A and B.

Average daily traded volume of Company A is 1000 and that of Company B is 1
million.
Which company is more liquid? Obviously company B as there is more investors
interest and traded more.
If the trading volume is high, then investors will show more interest
in the stock that may help in increase of the share price.
If the trading volume is low, then less investors will have interest in
the stocks. Such stock will be less expensive due to unwillingness of
investors to buy such stocks.
TRADING VOLUME COLGATES CASE STUDY EXAMPLE
Let us look at the trading volume of Colgate. We note from the below table that
Colgate traded volume was at around 1.85 million shares. This is fairly liquid
stock.
source: investing.com
Ratio Analysis Growth
Growth rate is one of the most important parameter when we look at analyzing a
company. As a company becomes bigger and bigger, its growth tapers and reaches a long
term sustainable growth rate. In this we discuss how sustainable growth rates are
important.
#29 SUSTAINABLE GROWTH
WHAT IS SUSTAINABLE GROWTH?
Companys topline growth is one of the most important parameter for investors as well as
creditors in ratio analysis. It helps the investor forecast the growth in earnings and
valuations.
It is important to nd the sustainable growth rate of the company. Sustainable growth
rate is a function of two variables:
What is the rate of return on equity (which gives the maximum possible growth)?
How much of that growth is put to work through earnings retention (rather than being
paid out in
dividends)?
Sustainable Growth Rate Formula = ROE x Retention rate
Let us take a simple Sustainable Growth calculation example.

ROE = 20%
Dividend Payout ratio = 30%
Sustainable Growth Rate = ROE x Retention Rate = 20% x (1-0.3) = 14%
If the company is not growing then there can be greater chances of
default on the debt. Companys growth phase is generally dividend
into three parts Hyper growth period, Maturity Phase, Decline
Phase
Sustainable Growth rate formula is primarily applicable in the Mature
Phase.
SUSTAINABLE GROWTH COLGATES CASE STUDY EXAMPLE
Let us now look at the sustainable growth rate of Colgate. Sustainable. We note
that the sustainable ROE as per the formula comes out to be around 11.6% in
2015. However, for all earlier years, it is in excess of 40% (which seems highly
unlikely).Due to recent volatility in foreign exchange (leading to sales volatility) and
buy backs done by the management (leading to an increase in ROE), the
sustainable growth is not making sense here.
Conclusions
Now that we have calculated all 29 ratios, you should appreciate that nancial statement
analysis includes learning about the company from all dimensions. A single ratio does not
provide us with a full understanding of the company. All the ratios needs to be looked at
cohesively and are interconnected. We noted that Colgate has been an amazing company
with solid fundamentals.
Now that you have done fundamental analysis of Colgate, you can move forward and
learn Financial Modeling (forecasting of Colgates Financial Statements)
What do you think?
j f s h
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F I L E D U N D E R : INVESTMENT BANKING , E Q U I T Y R E S E A R C H, F I N A N C I A L M O D E L I N G,
ACCOUNTING
DHEERAJ VAIDYA
worked as JPMorgan Equity Analyst, ex-CLSA India Analyst ; edu
qualication - engg (IIT Delhi), MBA (IIML); This is my personal blog that
aims to help students and professionals become awesome in Financial
Analysis. Here, I share secrets about the best ways to analyze Stocks,
buzzing IPOs, M&As, Private Equity, Startups, Valuations and
Entrepreneurship.
COMMENTS
Cindy says
MAY 31, 2017 AT 12:41 PM
Hi Dheeraj!
This is amazing!
Could you please email me the templates.
Thank you!
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:34 PM
Hi Cindy, please check your emails for the ratio analysis excel sheet.
Reply
isaac says
MAY 30, 2017 AT 2:57 PM
thank you very much your material is very educative ,is it possible to send spreadsheets
which are editable for me to practice im not good with the spreedsheet
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 3:58 PM
Hi Isaac, the excel sheets are editable. You can modify and check all the links and
formulas.
Reply
Dion says
MAY 26, 2017 AT 2:25 PM
Hi Dheeraj, usefull article and comments. can you please send me the excel le? Thank
you so much. Have a nice day Dheeraj
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:34 PM
Hi Dion, have sent you the sheet.

Reply
Bhavna Katre says

MAY 24, 2017 AT 10:34 PM
Hi Dheeraj, Many thanks for this article! Please share nancial analysis solved and
unsolved templates.
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:35 PM
Hi Bhavna, i have just added you to the mailing list. you should receive the les
shortly.
Reply
Eric Ayensu says

MAY 23, 2017 AT 4:57 PM
Good morning Dheeraj, thanks for the great eort you are putting in to help some of us.
I would be most grateful if you could send me the templates.
Thank you
Reply
Dheeraj Vaidya says
MAY 31, 2017 AT 4:36 PM
Hi Eric, please check your mail for nancial analysis excel template.
Reply
Eric Ayensu says

MAY 22, 2017 AT 11:54 PM
HI Dheeraj,
thanks very much for this great work, i would be most grateful if you could send me the
solved and unsolved template
eric
Reply
ALAA says
MAY 22, 2017 AT 1:16 PM
Wonderful Sir,
Can you please send me the template as well
Reply
Dheeraj Vaidya says
MAY 31, 2017 AT 4:36 PM
Hi Alaa, have sent the templates. Please check
Reply
Jai Jain says

MAY 15, 2017 AT 3:10 PM
Great lesson, can you send me solved and unsolved templates.

Sir, can you please send me the Ratio Analysis Solved and Unsolved Excel!
Thanks!
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:38 PM
Hi Jai, please check your email for the same.
Reply
Anton Fernando says

MAY 14, 2017 AT 2:45 PM
Great work. Im a fan of your work. Please, can you email me the excel template.
regards
Anton Fernando
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:39 PM
Hi Anton, have sent you the ratio analysis templates.
Reply
Ahmed says
MAY 14, 2017 AT 2:42 AM
Dear Sir Dheeraj,
you have been doing a great job, I humbly request if you could forward me the template
of this ratio analysis. Thanks a million
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:39 PM
Done Ahmed. Please check.
Reply
Ahmed says
MAY 14, 2017 AT 2:37 AM
Dear Sir Dheeraj, thank you so much for the hard work you are simply second to none
and to continuously share the greatest wealth of your knowledge with others is
appreciated in the strongest terms that I cant even explain. It is almost impossible to
come across people like yourself who is equipped with greatest knowledge yet so humble
and hardworking in sharing this great wealth. I admire your hardwork and knowledge.
You are great.
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:18 PM
thanks Ahmed for such kind words
Reply
Ravi Agarwal says

MAY 10, 2017 AT 6:11 AM
Hellow Dheeraj,
Thanks for this tutorial, it is very useful! I would like to know if you have the supporting
models too? I did not nd them on this page. I would like to have for my own practice and
consumption. I will be grateful if you kindly share the solved and unsolved versions of
these models.
Best regards,
Ravi
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:39 PM
Hi Ravi, please check your email. I have just emailed you those.
Reply
Olivier says
MAY 10, 2017 AT 2:27 AM
Great job Sir,
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:40 PM
Done Olivier!
Reply
absar says
MAY 8, 2017 AT 8:11 PM
Many thanks wonderful explanation..great work keep it up
Reply
absar says
MAY 8, 2017 AT 8:13 PM
Also could you please send me the template ..many thanks in advance
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:40 PM
Hi Absar, have sent the ratio analysis excel sheets. Please check.
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:40 PM
thanks Absar!
Reply
Julia says
MAY 7, 2017 AT 6:35 PM
Have been searching for sth like this for long. And its even better that I could have
expected it to be!
Thank you! This guide is really the most comprehensive.
And can I please have the excel template?
Thanks a lot again.

Julia
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:41 PM
thanks Julia
Have sent an email with the templates. Please check.
Reply
Rita Obu says

MAY 7, 2017 AT 1:19 AM
Dear Dheeraj,
This is an excellent tutorial. Very easy to understand and easy to navigate. Thank you for
your generosity. Please send me the Excel templates I would really appreciate it.
Best Regards
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:41 PM
thanks Rita! please check your email for the ratio analysis templates.
Reply
ANUM says
MAY 4, 2017 AT 11:36 AM
can you please provide the excel template
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:41 PM
Done Anum!
Reply
jk pahuja says
MAY 3, 2017 AT 11:21 AM
Nice way of presentation

.
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:20 PM
thanks!
Reply
Selven says
APRIL 24, 2017 AT 4:25 PM
Good day Dheeraj,
Great work, very useful and explained very succinctly. Please may I have a pdf version of
the explanations and interpretation of the ratios?
Sincere thanks
regards
Selven
Reply
Dheeraj Vaidya says
MAY 2, 2017 AT 6:18 PM
thanks Selven. I have sent the excel templates at your email id.
Reply
Ifeanyi Francis Osegbue says

MAY 18, 2017 AT 7:50 PM
Very informative Sir,
Can I get the detailed excel template?
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:36 PM
Hi Ifeanyi, please check your email for the templates.
Reply
Khitindra says
APRIL 18, 2017 AT 10:38 AM
Please share the templates

Thanks
Reply
Dheeraj Vaidya says

MAY 2, 2017 AT 6:18 PM
done Khitindra!
Reply
Esh says
MAY 2, 2017 AT 9:08 PM
Hi Dheeraj
Very much appreciated the commentary etc.

Kindly requesting you to e-mail me the Excel templates including calculations
please.
Thank you.
Esh
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:42 PM
Done Esh. Please check your email.
Reply
Viji says
APRIL 11, 2017 AT 10:13 AM
Hi,
Thank you for the detailed writeup. Could you provide me with the templates?
Viji
Reply
Dheeraj Vaidya says

MAY 2, 2017 AT 6:18 PM
Hi Vishwas, please check your email for the templates.
Reply
Olga says
APRIL 10, 2017 AT 12:48 AM
Dear Dheeraj,
Can you please provide me with the Excel templates? Thank you very much!
Reply
Dheeraj Vaidya says

MAY 2, 2017 AT 6:19 PM
Hi Olga, please check your email for the same.

Best,
Dheeraj
Reply
Francesco says
APRIL 7, 2017 AT 10:20 PM
Dheeraj, I must say how grateful Im for this page.
I had my 1,5y internship at investment banking and your lessons here were more usefull
than those over that period. Many thanks and Congrats for your job that enables us not
only to perform better at this industry but also to get a deep joy of doing this job.
Im really enjoying every class related to IB.
Sincers greetings from Colombia!
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:21 PM
thanks Francesco!
Its heartening to see that youve found these resources useful.
Best,
Dheeraj
Reply
Andres says
APRIL 1, 2017 AT 12:08 AM
Hi Dheeraj i submitted my email to get the Colgate Template and also for the Terminal
Value exercise but i havent received anything, could you check this please?
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:00 PM
Hi Andres, i have resent you the templates. Please check.
Reply
Manish Chandran says

APRIL 10, 2017 AT 1:55 PM
Hey Dheeraj excellent work manI too need the template.
Reply
Manish Chandran says

APRIL 10, 2017 AT 1:57 PM
Ok I got it
Reply
Dheeraj Vaidya says
MAY 2, 2017 AT 6:19 PM
Hi Manish, please check your email for the templates.
Reply
Sami Tasar says

MARCH 31, 2017 AT 8:36 PM
Dear Dheeraj,
Can you please provide me the Excel templates? Thank you very much!
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 12:59 PM
Hi Sami, i have just sent you the templates.
Reply
Rakesh Kumar says

MARCH 30, 2017 AT 12:55 PM
Hi Dheeraj, very usefull post. To validate them with Excel, would you please send me the
le? Thank you. Have a nice day.
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:00 PM
Hi Rakesh, please check your email. I have send the excel les to you.
Reply
Ravi says
MARCH 26, 2017 AT 9:49 PM
This is amazing work. Could you please send the nancial analysis template. Would you
have a modeling template too that links all 3 statements or just Income Statement.
Thanks for providing this.
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:01 PM
thanks Ravi! Please check your email for the same. For the linking of the 3
statements, please check this free nancial modeling training (colgate case study)
Reply
Jason Zhang says
MARCH 17, 2017 AT 3:28 AM
Well done! Dheeraj.
Could you please email me all the templates?
Thanks,
Jason
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:01 PM
Thanks Jason. I have just sent the excel les.
Reply
Biju Mathews says

MARCH 16, 2017 AT 4:10 PM
Hi Dheeraj,
Could you please send me the templates.
Thanks so much. Awesome.
Biju Mathews
Reply
Dheeraj Vaidya says
APRIL 4, 2017 AT 1:02 PM
thanks Biju. Please check your email for the ratio analysis templates.
Reply
Gonc says
MARCH 15, 2017 AT 6:07 PM
Dear Dheeraj,
Its always a pleasure to visit your site to get some good inspiration on what books to read.
Could i request for the nancial analysis templates. Thanks!
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:02 PM
Hi Gonc, thanks! have emailed the nancial analysis templates.
Reply
Samyak says
MARCH 14, 2017 AT 4:15 PM
HI Dheeraj,
Excellent article, Can I please get the template?
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:02 PM
Hi Samyak, please check your email for the templates.
Reply
Mariya says
MARCH 12, 2017 AT 3:06 AM
Hi,
Thank you for this tutorial, I nd it very useful! I just would like to ask where is the model
have you calculated the ratios? I did not nd them anywhere. I wou;d like to make a
comparison with mine which I have worked on the unsolved version. And I have some
more questions. May I ask them here or its better via e-mail, privately?
Thank you!
Mariya
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:03 PM
Hi Mariya, i have sent you both the solved and unsolved excel sheets. Please let me
know if you have any questions.
Reply
Osegbue Ifeanyi Francis says

MARCH 11, 2017 AT 9:34 PM
Hi Vaidya
Can you assist on earning management template?
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:03 PM
Hi Osegbue, unfortunately, i do not have one.
Reply
Kunal Thakkar says

MARCH 7, 2017 AT 3:29 PM
Hi Dheeraj,
Thanks a lot.. Good stu.

Can you please share the excel model?
Regards,
Kunal
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:04 PM
thanks Kunal. Please check your mail for the templates.
Reply
Harman says
MARCH 7, 2017 AT 3:13 PM
Hi Dheeraj, very useful article. Can you send me the le.
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:04 PM
Hi Harman, please check your email for the templates.
Reply
Pradeep says
MARCH 4, 2017 AT 7:33 PM
Great compilation Dheeraj. Thanks for this, can you please mail the excel template?
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:04 PM
Hi Pradeep, please check your email for the same.
Reply
disha ghedia says

MAY 29, 2017 AT 11:45 AM
This is wonderful analysis. Can you please share the template
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:34 PM
Hi Disha, i have just sent you the sheet.
Reply
Saruul says
MARCH 4, 2017 AT 4:49 PM
Hi, this course was great, very understandable. Thank you for your hard work :).
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:04 PM
Thanks Saruul!
Reply
farid es says
MARCH 2, 2017 AT 10:09 PM
Very nice Guide and so thanks. I would request for providing excel templates
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:50 PM
thanks Farid. I have just sent you the templates!
Reply
ganesh srini says

APRIL 4, 2017 AT 9:56 AM
Hi Dheeraj :
i am a nance professional myself, and i nd this outstanding and amazing. so
much of knowledge and hard work. god bless you.
may i request the excel templates for my learning purposes?
ganesh srini
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 12:59 PM
Hi Ganesh, I have sent the les on your email id.
Thanks,
Dheeraj
Reply
Mohamed Farouk says

MARCH 2, 2017 AT 3:19 AM
Hi Sir/Dheeraj
Excellent Information, Could you please send me the template and PDF for this lesson on
my email Please ? Thank you so much in advance.
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:50 PM
Hi Mohamed, have sent you the excel sheet. I do not have the PDF lesson on this.
Reply
Mohamed Farouk says

MARCH 13, 2017 AT 5:28 PM
Thank you so much
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 12:54 PM
Reply
Prince says
MARCH 2, 2017 AT 1:24 AM
Hello Dheeraj Vaidya,

Undoubtedly, you eort is worth being appreciated. I am not being able to download the
templates of nancial ratio analysis. If you dont mind, can you please send me those
templates?
Reply
Dheeraj Vaidya says
MARCH 3, 2017 AT 5:50 PM
thanks Prince. Please check your email for the templates.
Reply
Simo Benchellal says

MARCH 2, 2017 AT 12:29 AM
Dear Dheeraj,
Great job, deep explanation and great article. Thank you for the eort.
Could you please send me the templates (solved & unsolved) and PDF of this article?
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:51 PM
thanks Simo. Please check your mail for the templates.
Reply
Gagandeep says
MARCH 1, 2017 AT 11:39 PM
Hello Dheeraj,
Thank you very much for sharing your research here. Many students like me who have
interest in nancial modeling get to learn a lot of things from this blog.
But for practice i am unable to download the templates. Can you please send me the
templates on my E-mail ID
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:56 PM
Hi Gagandeep, have sent you the excel sheet. Please check. Thanks!
Reply
Sree says
MARCH 1, 2017 AT 7:37 PM
Fantastic Job!! Very useful article
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:46 PM
thanks Sree!
Reply
Abraham George says

FEBRUARY 27, 2017 AT 4:41 PM
Excellent post Dheeraj. Kudos to your hard work in educating fellow professionals. Thanks
a lot..!
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:45 PM
thanks Abraham!
Reply
Aditya Biradar says

Thanks for giving great lesson Plzz Send ratio analysis solved and unsolved examples
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:58 PM
Hi Aditya, please check your email. Have just sent you the templates.
Reply
Ashish says
FEBRUARY 14, 2017 AT 10:42 AM
Hi Deeraj
Can you please send me the templates?
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:59 PM
Done Ashish. Please check.
Reply
George says
Hi Dheeraj,
Simple perfect the work you have done on Ratio Analysis / Financial Statement Analysis
Do you have the pdf version ? Pls email this

George
Athens -Greece
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:59 PM
Hi George, thanks for the appreciation. I do not have the pdf version. however, i
have sent you the excel sheets.
Reply
Gurdeep Singh says

MAY 23, 2017 AT 7:05 PM
can you send the same on my email ID
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:35 PM
Hi Gurdeep, have sent you the sheet.
Reply
NIZAMUDDIN KHAN says
Hi Dheeraj, can you please send me the Ratio Analysis Solved and Unsolved Excel!
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 6:00 PM
Hi Nizamuddin, please check your email for the templates.
Reply
Sahil Bhatt says

Really great information. In-depth guide.

Can you please send the Excel le on my id!
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 6:00 PM
thanks Sahil!. Please check your email for the fundamental analysis templates.
Reply
issifu says
ver grateful
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:44 PM
thanks Issifu!
Reply
Abideen says
MARCH 17, 2017 AT 6:03 PM
This is a great analysis.
Thanks So much. Can I get the excel copy.
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:01 PM
thanks Abideen. Please check your email.
Reply
mutinta Maluba says
Kindly send me a detailed Ratios in a sheet
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 6:00 PM
Done Mutinta!
Reply
Paresh says
Dear Dheeraj, Your piece of work is one of the nest, simplest and most comprehensive
one. Very easy to understand and apply. Please keep up your good work.
Can you please send me the unsolved and solved excel sheet to complete my learning
since I am unable to download the same from site.
Cheers!
Reply
Dheeraj Vaidya says
MARCH 3, 2017 AT 6:00 PM
thanks Paresh! Have sent you the templates.
Reply
Mika Abraham says

JANUARY 18, 2017 AT 8:34 AM
Hi Dheeraj,
Thank you very much for sharing Creators knowledge and make it simple for us to
understand!! May God bless you!!
Reply
Dheeraj Vaidya says

JANUARY 18, 2017 AT 2:12 PM
thanks Mika!
Reply
Barbara Paong says

Hi Dheeraj,
Thank you very much for sharing. Could you please send me all the Excel
Templates together with pdf to my email
Best Regards,
Barbara
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:58 PM
Hi Barbara, please check your email.
Reply
Jose salazar says

MAY 13, 2017 AT 5:47 AM
Awesome work, could you please provide the excel template?
Dheeraj Vaidya says

MAY 31, 2017 AT 4:39 PM
Done Jose. Please check.
Emmanuel says
MARCH 1, 2017 AT 7:15 PM
Hello Dheeraj, can you kindly forward me the documents, i will really
appreciate it. Tried downloading the les you posted on the site, but its not
just downloading.
Regards.
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 5:57 PM
Hi Emmanuel, Please Check your email id for the templates.
Reply
SV says
DECEMBER 26, 2016 AT 7:46 PM
Hi Dheeraj
Can u check if Did correct ratio calculations , I can send you my work
Interpretation I am learning how to write, if you can , it would be great
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:21 PM
Sure.
Reply
prashanto mukherjee says
DECEMBER 25, 2016 AT 11:36 AM
Awesome explanation,I must say you have really put in some great eort for explaining
jargons of fundamental world.
Thank you so much and look forward to more of knowledge sharing articles from you.
It would be great if you can send over templates on my email id.
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:42 PM
Hi Prashanto, please check your email for the same.
Reply
Prasad says
Hi Dheeraj
Thanks for your contribution
Keep the good work rocking
Regards
Reply
Dheeraj Vaidya says

Thanks Prasad. I have just sent you the sheet. Please check.
Reply
Mady says
Hi Dheeraj
Reply
Dheeraj Vaidya says

MARCH 3, 2017 AT 6:01 PM
Hi Mady, please check for the templates. Have sent an email.
Reply
Vipul says
Hello Dheeraj
Seasons Greetings! Wish you are doing ne!
Then i was trying to download the Colgates Ration Analysis excel template(both solved
and unsolved excel templates) through the link provided on beginning of this page.
However i havent received the same in my inbox in spite of providing multiple email ids.
Thus may i request you to forward me both of this templates to my below listed email id
ASAP.
Kindly do the needful at the earliest and oblige.
Best/.
Vipul
Reply
Dheeraj Vaidya says

Hi Vipul, have sent the template to you.

Thanks,
Dheeraj
Reply
Ololade says
This is fantastic. well done. please can you mail the document to my email. could not
download or copy properly. Thank you so much
Reply
Dheeraj Vaidya says

thanks Ololade! have emailed you a copy.
Reply
saurabh says
Hi Dheeraj,
I remember doing nancial modeling module at corporate bridge with you guys. The
training modules listed at Wallstreetmojo look interesting. Looking forward for learning
some new modules.
Reply
Dheeraj Vaidya says

sure Saurabh! Good luck.
Reply
moru says
Very resourceful material. Kindly send me the excel and PDF version. Thanks
Reply
Dheeraj Vaidya says

Hi Moru, have emailed you the templates. Please check.
Reply
stefan says
Hi Vaidya,
Kindly send me the excel and PDF version.

Thanks
Reply
hao says
NOVEMBER 29, 2016 AT 7:33 PM
Hi, may I have a question, is that EBIT includes exceptional items or exclude exceptional
items?
Reply
Dheeraj Vaidya says

Hi Hao, EBIT may or maynot include exceptional items. You need to check the
management discussion and analysis section for details of such exceptions items (if
included).
Reply
Talal says
Hi Dheeraj,this is amazing work can you please send me the Ratio Analysis Solved and
Unsolved Excel!
Thank you
Reply
Dheeraj Vaidya says

thanks Talal! have email you the ratio analysis templates.
Reply
Piyush Akar says
NOVEMBER 16, 2016 AT 11:47 AM
Hi Dheeraj your article was very useful to brush up basics of nancial ratios and their
applicability.
Please do share Excel templates.
Apart from above, Dheeraj i would like to know how can i connect to you for any other
future references.
Thanks!
Reply
Dheeraj Vaidya says

Hi Piyush, thanks! have emailed you the templates. You will nd my contact details
in there.
Cheers!
Reply
Kingsley Mwale says

Hai! This kingsley from Zambia liked and enjoyed your article. Kindly send me
if possible Ratio analysis solved and unsolved.
Thanking you in advance
Reply
Dheeraj Vaidya says
MARCH 3, 2017 AT 5:58 PM
thanks Kingsley. Please check your email for the ratio analysis excel.
Reply
Sean says
NOVEMBER 16, 2016 AT 3:04 AM
Hi,
Can you please send me the ratio analysis excel sheets?
Thanks!
Reply
Dheeraj Vaidya says

Hi Sean, please check your email for the templates.
Reply
stefan says
Hi Vaidya,
Can you send me the templete?

Thank you
Reply
Dheeraj Vaidya says

MAY 31, 2017 AT 4:42 PM
Done Stevan! Please check.
Reply
David says
Hello Dheeraj,
Its my rst touch with WSMojo, and I feel really overwhelmed.
How could I start at WSMojo? I mean, from 0 to get the necessary knowledge to break into
IB.
Greetings,
David
Reply
Dheeraj Vaidya says

Hi David, thanks! To break into IB, you need to master Excel, accounting, Financial
modeling and valuations.
If you are relatively new to accounting, a good place to start is this nance for non
nance tutorial. Thereafter, you can pick this Ratio analysis case study to
understand the analysis part of accounting. For nancial modeling, you can refer to
this step by step guide to Financial modeling in excel. Try to practice this too.
for valuations, you can refer to this link Valuation
Good luck,
Dheeraj
Reply
Ibrar Ali says

HidEAR Sir,
I appreciate your eorts.I am ACCA Student.Could you plz send me these ratios in Excel
formats.
I will be very thankful.
Regards,
Reply
Dheeraj Vaidya says
Hi Ibrar, please check your mail. I have sent you the templates.
Best,
Dheeraj
Reply
Ibraheem says
OCTOBER 31, 2016 AT 12:29 AM
Hi Deeraj
This page has really been a blessing. You have done a marvellous job! Could you please
send me all the excel as well. The email download buttons seems to have an issue.
All the best,
Thanks,
Ibraheem
Reply
Dheeraj Vaidya says

Hi Ibraheem, have sent the templates to your email id.
Please check.
Reply
Sharifah says
OCTOBER 29, 2016 AT 9:24 AM
Hi, useful article. Please send me the excel template at your convenience. Thanks and
Best Regards,
Reply
Dheeraj Vaidya says

Hi Sharifah, apologies for this extended delay. Have just sent you the template.
Reply
Antonio says
OCTOBER 27, 2016 AT 2:57 PM
Hi Dheeraj,
Very useful article.
Could you please send to me the nancial analysis templates?
All the best
Antonio
Reply
Dheeraj Vaidya says

Thanks Antonio. Please check your email for the template.
Reply
Jerome says
OCTOBER 27, 2016 AT 12:33 PM
Hi Dheeraj,
Really amazing templates will be of great use and benet to me. Please may you send all
templates to me.
Reply
Dheeraj Vaidya says

Hi Jerome! have sent the nancial analysis templates to you.
Reply
sandeep misra says

MARCH 23, 2017 AT 11:37 AM
Amazing stu. Kudos. Can you send me all updated templates along with the
nancial analysis temp.
Thanks again.
Sandeep
Reply
Dheeraj Vaidya says

APRIL 4, 2017 AT 1:01 PM
thanks Sandeep. Please check your email fo rthe templates.
Reply
Ed says
OCTOBER 27, 2016 AT 10:41 AM
Hi can you please send me the ratio workbook. I learned a model complete from you and
now I model on my own business.
Reply
Dheeraj Vaidya says

Hi Ed, can you please check your email. Have just sent the ratio analysis workbook.
Reply
Hada says
OCTOBER 26, 2016 AT 12:44 PM
Hi Dheeraj, its very informative. Can you please send me the templates to my email?
Reply
Dheeraj Vaidya says

Done Hada. please check your email.
Reply
Peter says
You are doing a great job for young Analyst
Sir, can you please send me the Alibaba IPO Financial Model
Thank you
Reply
Dheeraj Vaidya says

Hi Peter, Thank you! Have mailed you the model.

Reply
Peter says
You are simply so Awesome! You are doing a great job for the investing community
Thank you
Reply
Dheeraj Vaidya says

Hey Peter, many thanks i have emailed you the ratio analysis excel sheets.
Reply
Abrar Tanoli says

Excellent, really appreciate the eorts made by Dheeraj Vaidya. how can i get these stu
in email.
Regards
Abrar Tanoli
Reply
Dheeraj Vaidya says

Hi Abrar, emailed you excel ratio analysis templates.
Reply
Vipul Shah says

Hi Dheeraj
could you please send me the Ratio Analysis Solved and Unsolved Excel! Somehow its not
working through download mode.
Best/.
Vipul
Reply
Dheeraj Vaidya says

Done Vipul. Please check your inbox.
Reply
Ravindra says
OCTOBER 24, 2016 AT 12:18 PM
Hello Dheeraj
Good analysis .. !!
Request to share the nancial analysis templates.
Reply
Dheeraj Vaidya says

Thanks Ravindra. Please check your email.
Reply
Jennifer Lim says

Hi Dheeraj, usefull article and excellent study. Please send me the excel template at your
convenience. Thanks and Best Regards,
Reply
Dheeraj Vaidya says

thanks Jennifer! Please check your email.
Reply
JJ says
OCTOBER 22, 2016 AT 11:25 PM
Thank you for your comprehensive guide! Could you send me excel template through
email? Thanks
Reply
Dheeraj Vaidya says

Thanks JJ. Have sent the ratio analysis templates.
Reply
Ganesh Pawar says

Hi Dheeraj Great work.You making thing simpler to me.can I get ratio analysis excel sheet.
Reply
Dheeraj Vaidya says

thanks Ganesh! Please check your inbox for the templates.

Reply
Vinay says
OCTOBER 22, 2016 AT 10:04 AM
Very interesting and ratios and analysis presented in a very apt way. excellent
Reply
Dheeraj Vaidya says

thanks Vinay for the appreciation.
Reply
Carla Wallis says

Thank you for the article. It is very useful.
Reply
Dheeraj Vaidya says

Thanks Carla!
Reply
Reza says
This is a very comprehensive paper. Is this available in word or pdf? Also, can you please
share the various excel les. Thanks.
Reply
Dheeraj Vaidya says

Hi Reza, i dont have a PDF. Have emailed you the ratio analysis templates. Please
check.
Reply
Dr. Mohammad Al-Afeef says

Hi,
Could you please send me the templates to my email, and all the ratios , and if can any
information related to this subject, its great work
thank you
Dr. Mohammad Al-Afeef
Reply
Dheeraj Vaidya says

Hello Dr. Mohammad Al-Afeef, please check your email. Have sent the nancial
analysis excel sheets.
Reply
Jitendra Nailwal says

Hi dheeraj,
Great elborated sheet, can you please email to me?
Thanks
Jiten
Reply
Dheeraj Vaidya says

thanks. Please check your inbox Jitendra for the templates.
Reply
Clinton says
OCTOBER 17, 2016 AT 10:02 PM
This is great. I would love a copy. Thanks.
Reply
Dheeraj Vaidya says

Please check your email Clinton. Hope you received it this time.
Reply
AHN says
Thank you for the great lesson.can you send me solved and unsolved templates.
Reply
Dheeraj Vaidya says

Hi Sahin, thanks. Have sent you the excel templates on ratio analysis.
Reply
Rui Gomes says
That tool is really wonderful. Would be possible to have a copy as well?
Thank you
Reply
Dheeraj Vaidya says

thanks Rui! Please check your inbox for the nancial analysis template.
Reply
Achintya Misra says

OCTOBER 13, 2016 AT 11:03 AM
Article is really interesting, Pls share the excel sheets.
Reply
Dheeraj Vaidya says

thanks Achintya. please check your mail.
Reply
Jorge Lapa says
Hi Dheeraj
Your article is very useful to learn analyze companys condition, could you send me the
ratio analysis excel sheet?
Thanks
Reply
Dheeraj Vaidya says

Thanks Jorge! Please check your inbox for the nancial analysis excel.
Reply
Anges says
Good work mister Dheeraj,please could you send me the template.Thank you in advance
Reply
Dheeraj Vaidya says

thanks Anges. Please check your inbox for the templates.
Reply
Phineas Magagula says

Hi Dheeraj,
This is a very useful article and comments. May you please send me the le as I am failing
to download. Thanks a lot.
Reply
Dheeraj Vaidya says

Thanks Phineas. Have resent the templates to you. Please check.
Reply
razane khatib says

OCTOBER 10, 2016 AT 12:26 PM
Amazing explanation Dheeraj. Thank you alot. May i have a copy of the templates plz as
well. thank you so much
Reply
Dheeraj Vaidya says
thanks Razane! Please check your inbox for the details.
Reply
Apoorv Tiwari says

hey dheeraj i am one for your followers i just want to thank you for this content you have
put here.this is amazing putting all this knowledge in a structured form requires huge
amount of eorts all your post are very detailed thank you sir once again.you are doing
great and wish you all the success in life and in general.
I would request you to please send me the template of Ratio Analysis.
Reply
Dheeraj Vaidya says

Many thanks for the wishes Apoorv. Please check your inbox for the templates.
Best,
Dheeraj
Reply
Nada El Shakankiry says
Hi Dheeraj,
Would you please send me the Ratio Analysis Solved and Unsolved Excel?
Reply
Dheeraj Vaidya says

Hi Nada, please check your inbox for the ratio analysis excel.
Reply
Nada El Shakankiry says

Thank you..
Reply
julita says
Hello.
Your article is very useful to learn analyze companys condition, could you send me the
ratio analysis excel sheet?
Thanks
Reply
Dheeraj Vaidya says

thanks Julita. Please check your inbox for the excel sheet.
Reply
Shoaib Ibrahim says

Hello Dagestan,
Really insightful work. Please share both templates and guide. Would appreciate such an
amazing work on cash ow statement.
Regards,
Shoaib
Reply
Dheeraj Vaidya says

thanks Shoaib. Will try and make one on the Cash Flow statements too. I have sent
the templates to your id.
Reply
Mohammed Abdelsalam says
Very nice work.
but why some denitions is not appearing.
and please i need the template.
Reply
Dheeraj Vaidya says

Thanks Mohammed. Can you please let me know which sections dont appear. I
have sent the ratio analysis templates to you.
Reply
Ali says
Thank you for this eort.
Reply
Dheeraj Vaidya says

Hi Ali, please check your mail for the ratio analysis spreadsheet.
Reply
Hamilton Cleto says

Hi Dheeraj plse can you send me the templates please.
Much appreciated
Hamilton
Reply
Dheeraj Vaidya says

Hi Hamilton, please check your inbox for the templates.
Reply
Mohammad Eftekhari says

SEPTEMBER 30, 2016 AT 9:20 PM
It is astonishing , keep up the good work

I would be pleased if you could send me a copy
Reply
Dheeraj Vaidya says

Thanks Mohammad. Please check your email for the ratio analysis spreadsheet.
Reply
Fedwa Agnaou says

SEPTEMBER 30, 2016 AT 5:23 AM
Hi Dheeraj,
thanks a lot Ive received them

youve made a great work thanks for all
Reply
Dheeraj Vaidya says

thanks Fedwa!
Reply
Parkar Vaseem says
Can you please forward me the same
Reply
Dheeraj Vaidya says

Hi Parkar, i have just resent you the templates. Please check.
Reply
Nazariy says
hi Dheeraj,
Could you please share with your ratio template? it looks great and full I would like
to understand if it is simple in use.
Thank you in advance.
Reply
Dheeraj Vaidya says

thanks Nazariy! I have sent the templates to your id.

Reply
Deepika says
Hi Dheeraj, your posts are too good for a beginner to understand. I would like to have the
excel template to have more meaningful insight. Your posts helps me alot and keep up
your good work.. keep writing. Good Day
Reply
Dheeraj Vaidya says

thanks Deepika for the encouraging works. Please check your inbox for the ratio
analysis sheet.
Reply
Naseer Ahmed says

Hi Dheeraj, you are really helping the nancial aspirants. Can you please send me the le
Solved and Unsolved excel?
Reply
Dheeraj Vaidya says
Thanks Naseer. Please check your mail for the ratio analysis sheets.
Reply
Deepika says
Hi Dheeraj, Your post is awesome with very strong explanation. You are doing a great
work.
can you please send me the excel template to have more meaningful insight from the
article.
Reply
Dheeraj Vaidya says

done!
Reply
Esmie Ngagwe says

Hey Dheeraj,
This is very useful indeed. I work as an auditor and my work requires a great deal of
analytical skillI am even considering Financial analysis courses
Great job
Reply
Dheeraj Vaidya says

thanks Esmie!
Reply
Stuart Heeks says

Hi Dheeraj, This is a very good spreadsheet and will prove very useful for our trainees.
Please could you email me the spreadsheet?
Reply
Dheeraj Vaidya says

Hi Stuart, please check your inbox for the ratio analysis excel sheet. Have just
emailed you the same.
Best,
Dheeraj
Reply
Ahmed says
Hi Dheeraj; could you send me a copy please
Reply
Dheeraj Vaidya says

done Ahmed!
Reply
May Poon says

Hello Dheeraj,
Great work and in-depth analysis. Is it possible to send me the templates? Much
appreciated.
Reply
Dheeraj Vaidya says
thanks May. please check your email.
Reply
Eswar Penugonda says

the work is really amazing sir. it would be useful to me Please kindly send me the excel
sheet. Thanks
Reply
Dheeraj Vaidya says

Thanks Eswar. Have sent the nancial analysis templates to you.
Reply
Renee Gosselin says

Dheeraj,
Wow! Congratulations for your great work!
Can you please send me the Ratio Analysis Solved and Unsolved Excel les?
Thank you
Reply
Dheeraj Vaidya says

thanks Renee! have just sent the templates. Please check.
Reply
hitarth says
Hi Dheeraj, quite useful article, can you please sned me the le? Thank you.
Reply
Dheeraj Vaidya says

hi Hitarth, have send the les to you.
Reply
Durga Prasad says
Hi Dheeraj,great job and I hope to get these kind of articles going forward as well. Can
you please send the le to my mail.
Reply
Dheeraj Vaidya says

thanks Durga :-). I have sent across the ratio analysis sheets to you.
Reply
David Brito says

Hi Dheeraj,
Excellent job
Could you please send me the template on my email
Thanks a lot,
Reply
Dheeraj Vaidya says

many thanks David :-).
Please check your inbox for the templates.
Reply
srikanth thogarchedu says

excellent work, appreciated.

can you please share the excel template for my reference and practice?
thank you
Reply
Dheeraj Vaidya says

thanks Srikanth. Have sent the ratio analysis excel for your reference.
Reply
RAHUL PADHIAR says

Hi Dheeraj,
Love your work keep it up man, please send me the templates
Thanks!
Reply
Dheeraj Vaidya says

thanks Rahul. Please check your inbox.
Reply
Rajiv Mehra says

Hi Dheeraj. Can you please mail me the colgate template.
Thanks Appreciate it.
Reply
Dheeraj Vaidya says

thanks Rajiv. I have sent the nancial analysis excel.
Reply
Umang parekh says
Hello,
Could you please send me a mail of this solved template ?
Reply
Dheeraj Vaidya says

Hi Umang, can you please check your mail. thanks.
Reply
Muhammad Aimash says

Great Work. Thanks for this. I can totally see the number of hours you must have spent to
get this done. Can I also get a copy of the excel template.
Kind Regards,
Muhammad Aimash
Reply
Dheeraj Vaidya says

thanks Muhammad for your kind words. i have just sent the ratio analysis excel
sheets for your perusal.
Reply
Tony says
Dheeraj, this is a great work. Can you please send me the templates? Thanks
Reply
Dheeraj Vaidya says

Thanks Tony. Please check your inbox.
Reply
Leonardo Cuzul says

This is certainly an outstanding work. Thank you for sharing it. Would you mind sending
me the template?
Reply
Dheeraj Vaidya says
Hi Leonardo, thanks for the encouragement. Have just send the ratio analysis les
at your inbox.
Reply
I Naumov says
Thank you
Reply
Dheeraj Vaidya says

Please check your inbox for the ratio analysis les.
Reply
Simon says
Dear Dheeraj,
Good job, deep explanation!
Could you pls send me the templates (solved & unsolved) and PDF of this article?
Many thanks!
Simon
Reply
Dheeraj Vaidya says

thanks Simon. I have happy to see that this ratio analysis guide was useful. Have
sent the excel les at your email.
Reply
Mamoudou says
Clear, concise what a great article, Very helpful. Can you please sent me the le
Reply
Dheeraj Vaidya says

thanks Mamoudou! please check your inbox for the les.
Reply
Moses says
Thats amazing for the nancial better skills development.
Reply
Dheeraj Vaidya says

Thanks Moses. Glad that you found this useful.
Reply
Cem Durdubasoglu says

Could you please send me the template on my email thanks a lots
Reply
Dheeraj Vaidya says

Hello Cem, please check your mail for the templates!
Reply
Malesela says
Hi Dheeraj, could you please email me your template. Thanks this is great.
Reply
Dheeraj Vaidya says

done Malesela. Please check your email.
Reply
Rafagag says
Hi;
Congratulations for your job!, Please send me the templates on my email.
It would be helpful.
Reply
Dheeraj Vaidya says

thanks Rafagag. Please check your mail for the ratio analysis excel
sheets.
Reply
ADL says
Thanks so much for this. Please send the templates if you dont mind sending another set.
Terric work.
Best,
Andrea
Reply
Dheeraj Vaidya says

Thanks ADL. Please check your mail.
Reply
Sony Ha says
Hi Dheeraj,
Thank you for your clear explanation, can you please send me the templates? It would be
helpful.
Reply
Dheeraj Vaidya says

Thanks Sony for the appreciation. Please check your mail for the ratio analysis
template.
Reply
Bourdrel Edouard says

Hi Dheerja,
really nice job ! Could you send me the templates ? Thank you in advance !
ED
Reply
Dheeraj Vaidya says

Hi ED, thanks! please check your inbox.
Reply
Prakash Deo says
This was a wonderful article and became easy learning for me. Could you please share
those templates with me so that i could benet form it even more. Thank you in advance.
Reply
Dheeraj Vaidya says

Thanks Prakash! Please check your inbox for the ratio templates.
Reply
Dsd says
Great job Deheeraj!
Could you please send me the templates?
Thanks!
Reply
Dheeraj Vaidya says

Thanks Dsd, please check your inbox for the ratio templates
Reply
Mujahid Rasul says

Really a Great stu and thank you for your patience for very clearly explaining FS analysis
in great detail.
Can you please email me the excel templates? Both solved and unsolved.
Regards
Mujahid
Reply
Dheeraj Vaidya says

thanks Mujahid for the appreciation! I have emailed you the nancial statement
analysis excel sheets.
Reply
SNIGDHENDU MUKHOPADHYAY says

Sir, would you please send me the templates as i am A CFA L-I candidate.
with regards.
Snigdhendu
Reply
Dheeraj Vaidya says

Hi Snigdhendu, please check your inbox.
Reply
Danish Cooper says

Cash and Cash equivalents has increased from 4.2% in 2007 and is currently standing at
8.1% of the total assets. Why a built-up of cash?
This above is one of the many questions one must ask while doing vertical analysis. Could
you guide me on how to answer this and other such questions?
Thank you.
Reply
Dheeraj Vaidya says

Hi Danish,
Good question
The vertical and horizontal anlaysis provides us with the questions and not the
answers. We need to go deep into the annual report to nd out the reason for the
same. Best place to start with is the Management Discussion and Analysis section.
In this they do discuss the variations, growth gures etc.
Best,
Dheeraj
Reply
syafrien anwar says

Hi Deeraj
Its an excellent job youve done.Could you please send me the excell as well.Thanks
Reply
Dheeraj Vaidya says

thanks Syafrien! please check your inbox for the excel sheets.
Reply
Justine says
This is awesome. Very helpful!

Can you send me the excel both Solved and Unsolved?
Thanks!
Reply
Dheeraj Vaidya says

thanks Justine! Have emailed the templates.
Reply
Ruth says
Hi Dheeraj, thanks for this excellent study. Helped me learn some new approaches. Wold
you be able to email me the template? Hope to see more from you
Reply
Dheeraj Vaidya says

Hi Ruth, glad that you liked the material and found this useful. Please check your
inbox for the details.
Reply
Jorge says
Hi Dheeraj,
Would you be son kind to send me the template?
regards,
JB
Reply
Dheeraj Vaidya says

Hello Jorge, please check your email.
Reply
Hugo Catacora says

Hi Dheeraj
Excellent work, Could you please send me the template (both solved and unsolved) and
PDF for this lesson on my email ?
Thanks in advance.
Hugo
Reply
Dheeraj Vaidya says
Hi Hugo, thanks! please check our inbox.
Reply
Asma Moumini says

I really appreciate sharing it whit us. Could you send me a copy ,thank you in advance
Reply
Dheeraj Vaidya says

Thanks Asma. Please check your inbox.
Reply
Yan says
Hello Dheeraj,
Many thanks for this nice and intuitive guide.

Could you please provide me as well with solved and unsolved .xls documents ?
Best Regards,
Yan
Reply
Dheeraj Vaidya says

Thanks Yan. please check your email.
Reply
Mohamed Ragab says

Could you please send me the template on my email thanks a lots
Reply
Dheeraj Vaidya says

done Mohammed. Please check.
Reply
Deepak Bhansali says
Very nice presentation. I would request for providing excel templates. Regards
Reply
Dheeraj Vaidya says

thanks Deepak. Have sent the email templates.
Reply
Vinay says
Hi Dheeraj. How are you? Great stu and thank you for your patience for expalianing FS
analysis in great detail.
Can you pls mail me the excel templates. Both solved and unsolved.
Thanks a ton.
Reply
Dheeraj Vaidya says

Thanks Vinay. Please check your inbox. Have just resent you the templates.
Reply
Suresh Raghavan says

Hi Sir,
Excellent work and Knowledgeable content,you have made an outstanding eort to

describe these ratio analysis.
can you please send me the template.
Thanks in advance!!
Suresh
Reply
Dheeraj Vaidya says

Hi Suresh, have mailed the ratio analysis excel sheets. Please check.
Reply
Bennett Martin says

Fantastic work!!
Could you please send me a copy of the template? Thank you.
Reply
Dheeraj Vaidya says

thanks Bennett. Please check your inbox for the excel sheets.
Reply
Ehab dawoud says

Thank you for great information , could you please send me solved and unsolved
templates.tks
Reply
Dheeraj Vaidya says

Thanks Ehab. resent the templates.
Reply
Sushila Palan says
Thanks for sharing your wonderful analysis. May I request excel templates for ratios and
PDF for this lesson ?
Regards
Sushila
Reply
Dheeraj Vaidya says

Hi Sushila, have sent the ratio analysis excel templates to you. Please check.
Reply
Javier says
Great job!! Could I have the templates??
Thanks!!
Reply
Dheeraj Vaidya says

Thanks please check your email.
Reply
Nomesh Kumar Gehlot says

Can you please send all excel les
Reply
Dheeraj Vaidya says

Done Nomesh!
Reply
Manfred Pearce says

Great job. Very insightful and educative. Will appreciate the template please. God bless
you
Reply
Dheeraj Vaidya says
thanks Manfred. please check your email for the templates.
Reply
Simon says
Hello, can you send me the templates please?
Thank you for your hard work and generosity.
Reply
Dheeraj Vaidya says

Hi Simon, have sent you the templates.
Reply
Justin says
Hi Dheeraj,
Could you please send me the templates.

Thanks so much. This is awesome.
Reply
Dheeraj Vaidya says

Thanks Justin. Please check your email.
Reply
Muhammad Saleem Anwar says

Dear
Plz send me the Template le.
Thanks
Reply
Dheeraj Vaidya says

Hi Muhammad, please check your email for the templates.
Reply
Nikhil says
Wonderfully simplied the core concept. Thanks you for this.
Reply
Nikhil says
Can you please share the solved and unsolved excel. Thanks in advance
Reply
Dheeraj Vaidya says

Hi Nikhil, please check your mail. I have resent the templates.
Reply
Dheeraj Vaidya says

Thanks Nikhil!
Reply
Jesse says
Can you send me the template please
Reply
Dheeraj Vaidya says

thanks Jesse. Please check your email.
Reply
Killian Sibata says

This is awesome
Reply
Dheeraj Vaidya says

Thanks Killian!
Reply
Rashid abbas says
Amazing Sir, kindly send me the templete
Reply
Dheeraj Vaidya says

Thanks Rashid. Have sent the excel sheets. Please check.
Reply
Ravinder Chana says

Dheeraj,
Please could you also send me the les?
You must be getting hundreds of emails requesting templates?
Thanks
Rav
Reply
Dheeraj Vaidya says
Thanks Ravinder. please check your email for the ratio analysis excel sheet.
Reply
wendy says
This post is awesome! I like it. Can you share the templates with me please? Many thanks
Reply
Dheeraj Vaidya says

Hey Wendy, many thanks for the appreciation. Have sent the templates of ratio
analysis to you.
Thanks,
Dheeraj
Reply
Erik says
Hi Dheeraj,
You have a gift! I stumbled on your site during work hours (some look at TMZ, I look at
nance websites) and I had to get back to my job so as not to cheat my clients. Great
work. May I too have the practice template?
Thanks,
Erik
Reply
Dheeraj Vaidya says

Many thanks Eric
Please check your email for the ratio analysis excel.
Reply
Richard Amoasi-Andoh says

Very comprehensive. Please send me the template sir
Reply
Dheeraj Vaidya says
thanks Richard. Have sent the templates to you.
Reply
Shukhrat Azizmamamdov says

Thank you for sharing that kind of information. It is indeed helpful. Please be kind to
share with me the template. Many thanks
Reply
Dheeraj Vaidya says

Thanks Shukhrat! Please check your inbox for the ratio excel.
Reply
David says
Hi Dheeraj
Can I please have the template for the ratio analyses.

Great work and much appreciated.
Many thanks.
Reply
Dheeraj Vaidya says

Hi David, thanks for the appreciation. Have resent the templates for
ratio analysis.
Reply
Sebastian Paul says

Hi Dheeraj, Can you plesae send for me the template.
Thanks in Advance.
Reply
Dheeraj Vaidya says

Thanks Sebastian! have sent the ratio analysis excel templates to you.
Reply
Srivani Sampat says
Very Very well explained. Thanks for taking the time. Would you please send the
templates, would be useful for me.
Reply
Dheeraj Vaidya says

Thanks Srivani, have resent excel templates of nancial statement analysis.
Reply
ABDUL REHMAN says

this is great. can we have the templates.
Reply
Dheeraj Vaidya says

Hi Abdul, have sent the ratio excels.

Reply
Jayant Bondre says

Very nice and good work and will be very helpful. Kindly send me the solved and unsolved
templates.
Reply
Dheeraj Vaidya says

Many thanks Jayant! I have resent the templates.
Reply
Alejandra Sanchez says

Thanks for such an excellent article. Can you please email me the templates? Thanks!
Reply
Dheeraj Vaidya says

Thanks Alejandra, have sent the templates to your email id.
Reply
NUR ATIKAH MAHAZIR says

This is awesome. nice work Mr Dheeraj. I would like to know whether is there any
template regarding with eciency ratio of the bank. eg tax management eciency ratio,
expense control eciency ratio, asset management eciency ratio and fund
management eciency ratio.Sir, do you mind send me this template soved and unsolved.
Btw, its really really great job.
Reply
Dheeraj Vaidya says

Thanks Nur for the appreciation :-). As of now i dont have any ready material on the
ratios you mentioned. Will prepare one on it soon. Have sent you the nancial
anlaysis templates.
Reply
Mahinda says
Hi Mr Dheeraj,
Im really impressed with this. Can you pls send me a copy of this.
Best rgds
Reply
Dheeraj Vaidya says

Thanks Mahinda. have sent the templates.
Reply
Abhishek Jain says

Very good explanation of ratios. Please share the excel templates
Reply
Dheeraj Vaidya says

Thanks Abhishek. have sent the templates on ratio analysis.
Reply
Sothea says
Hi Dheeraj Vaidya,
This is very very good nancial materials. Is there a PDF template? Could you share it?
Thanks with regards,
Reply
Dheeraj Vaidya says

Thanks Sothea. As of now, i dont have the PDF as of now. However, i have emailed
you the excel ratio templates.
Reply
Alisher says
Hello Dheeraj,
Please could you send me ratio analysis.
Solved and unsolved.
Thank you.
Reply
Dheeraj Vaidya says
Hi Alisher, have send the nancial analysis template.
Reply
Moses Tetteh-Fio says

Excellent job, . . . hoping to follow your footsteps as much as championing this course is
concerned
Reply
Dheeraj Vaidya says

thanks Moses Please do let me know if you are facing any issues.
Reply
Moses says
Thats lots of knowledge shared free of charge shapen the world.

God bless you so much for sharing, well always be grateful
Reply
Dheeraj Vaidya says

thanks.
Reply
Rupali says
Thank you for making this concept so easy. Excellent work.

May I request you for the excel templates for practice.
TIA
Regards,
Rupali
Reply
Dheeraj Vaidya says

Thanks Rupali. Have resent the ratio analysis excel.
Reply
Aamir shehzad says
Great work dear, can u plz share the Templates
Reply
Dheeraj Vaidya says

thanks Aamir. have sent the templates.
Reply
Liisa says
Amasing work Dheeraj! So well and clearly explained. I would really appeciate if you could
send me the templates. Many thanks in advance!
Reply
Dheeraj Vaidya says

Thanks Liisa! Have resent the nancial statement analysis excel.
Reply
John says
Hi Dheeraj,
Very useful and informative template.. very interesting explanations

Is it possible to get copy of template to me?
Regards
John
Saudi Arabia
Reply
Dheeraj Vaidya says

thanks John. I have mailed you a copy of the ratio analysis excel. Please check.
Reply
Alessandro Gradilone says

Hi, wonderful material and information you compiled here, congratulations. Can you send
me the excel and all material, or send me the link for me to download it? Thank you!
Reply
Dheeraj Vaidya says
Hi Alessandro, thanks for the appreciation. Have sent the nancial analysis excel at
your email id.
Reply
igracica says
Kindly send me the Ratio Analysis Solved and Unsolved .

Have a nice day.
Thank You
Reply
Dheeraj Vaidya says

Thanks Igracica. Please check your email for the ratio analysis excel.
Reply
Dragana says
Have a nice day.
Thank You
Reply
Dheeraj Vaidya says

Hi Dragana, have sent the templates.

Thanks
Reply
netanel says
would it be possible to send me the le as an excel le and the templates i

will be most grateful
my email is nta531@gmail.com
thank you
netanel
Reply
Dheeraj Vaidya says

Sure Netanel. have resent you the templates.
Reply
Jose Luis says
Hi Dheeraj,
Could you be so kind to send me the templates?
Reply
Dheeraj Vaidya says

Hi Jose, have sent the ratio analysis templates.

Thanks
Reply
Dzham says
Thank you for the great lesson.can you send me solved and unsolved templates.tks
Reply
Dheeraj Vaidya says

Hi Dzham, have sent both the templates.

Thanks
Reply
Nadia says
AUGUST 31, 2016 AT 3:19 AM
Great lesson, can you send me solved and unsolved templates.

Thanks!
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:06 PM
Thanks Nadia. I have sent the nancial analysis excel sheets.
Reply
Jose Miranda says

AUGUST 31, 2016 AT 3:10 AM
Excellent. I rally like how you split it into the 3 methods. I would be grateful to receive the
templates and guide.
Reply
Dheeraj Vaidya says
AUGUST 31, 2016 AT 6:06 PM
Thanks Jose. I have sent the nancial analysis excel guide.
Reply
Chinagorom says
AUGUST 30, 2016 AT 7:31 PM
Wow. Brilliant work here Sir. very easy to understand. God bless you for the eort. Wow.
Would appreciate if you send to me also please.
Thank you
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:06 PM
thanks Chinagorom. I have resent excel sheets on Ratio Analysis
Reply
Mohammed says
AUGUST 30, 2016 AT 2:43 PM
Wonderful Sir,
Best Regards
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:07 PM
Thanks Mohammed. I have resent the nancial statement analysis excel sheets.
Reply
Zoran Jovanovski says

AUGUST 30, 2016 AT 2:14 PM
This whole thing, this is so kind of you. Not many pleople like you in todays world
Dheeraj. Could you please send me the nancial analyses template, please. Wish you all
the best. Thanks
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:07 PM
Thanks Zoran. I have resent excel ratio anlaysis sheets
Reply
Irfan Jinnah says
AUGUST 30, 2016 AT 1:23 AM
Great Tool and good read. Please send me the template at your convenience.
Thanks
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:08 PM
Thanks Irfan! I have resent ratio analysis excel sheets.
Reply
Andreas Keller says

AUGUST 29, 2016 AT 2:07 PM
Very useful material right there. May I kindly ask for a copy?
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:08 PM
Thanks Andreas. I have resent the excel analysis of Colgate sheet.
Reply
Sagar chaudhary says
AUGUST 28, 2016 AT 8:43 AM
Hello sir. Thanks for sharing this article It is very helpful in understanding a complex
topic Thanks a lot.. Sir could you please share this template with me
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:08 PM
thanks Sagar, Please check your email id for the ratio analysis templates
Reply
Oana says
AUGUST 27, 2016 AT 2:29 PM
Great work! Please email to me the template.
Thank you.
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:09 PM
thanks Oana! Have just resent you the ratio analysis template.
Reply
Todd Ringler says

AUGUST 25, 2016 AT 1:51 AM
Very Well Presented-Please forward the templates Thank you
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:09 PM
Hi Todd, please check your email for the templates.
Reply
Chris Bowen says

AUGUST 23, 2016 AT 7:15 PM
Incredible piece of work and very helpful, please could you send me a copy of the
template?
Reply
Dheeraj Vaidya says
AUGUST 31, 2016 AT 6:10 PM
Hi Chris, thanks! I have just resent you the nancial analysis templates.
Reply
Fred says
AUGUST 23, 2016 AT 2:18 AM
This is really useful. Great work!! Could you please send me the templates for the
analysis?
best,
Fred
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:10 PM
Hi Fred, thanks. have resent you the templates.
Reply
Aarti Alagappan says
AUGUST 23, 2016 AT 1:32 AM
Hi Dheeraj,
Can you please resend the materials to me.
Many Thanks
Aarti
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:10 PM
Hi Aarti, have resent you the excel ratio analysis templates.
Reply
Tharindu says
AUGUST 22, 2016 AT 3:49 PM
Good lesson , appreciate !
Please email to me the template .
Thank you.
Reply
Dheeraj Vaidya says
AUGUST 22, 2016 AT 4:53 PM
Hi Tharindu, thanks! have resent you the nancial analysis templates.
Reply
Gaurav says
AUGUST 25, 2016 AT 10:16 PM
Hi Sir,Great work
Can you send me the excel template
Reply
Dheeraj Vaidya says

AUGUST 31, 2016 AT 6:09 PM
Hi Gaurav, have sent the nancial statement analysis templates again.
Reply
Alex says
AUGUST 22, 2016 AT 2:14 PM
Great work! Thanks so much for your explanation to the ratio anlysis in a clear Way.
And now I have a question needing your comments further as following:

About the ratio of DSCR, I read some articles before using EBITDA as numerator instead
of EBIT. It maybe have dierent interpretation in concept for measuring, I think. But to
measure the operating cash folllow enough or not covering the debt payment in 1 year,
EBITDA may be a better indicator on operating cash ow. How do you think?
Anyway, could you share me the templates for better learning?
Regards,
Reply
Dheeraj Vaidya says

AUGUST 22, 2016 AT 4:50 PM
Hi Alex, you are right! thanks for pointing this out. We could have used EBITDA
which is a much better measure of operating cash ows.
I have resent you the templates.
Reply
Rajeeb kumquat sahoo says

AUGUST 21, 2016 AT 12:01 AM
Hi Dheeraj,
Really awesome!
You explained it so well. Can you share all the templates?
Thanks,
Rajeeb.
Reply
Dheeraj Vaidya says
AUGUST 22, 2016 AT 4:53 PM
Hello Rajeeb,
have resent you the ratio analysis in excel templates
Reply
Abdullah Bajammal says

AUGUST 19, 2016 AT 6:43 PM
Thank you soo much for this great explanation. Actually I got a job last week in a
corporate banking sector which is all about this lesson. I appreciate what you have done.
God bless you. Please mail it to me
Abdul
Reply
Dheeraj Vaidya says

AUGUST 20, 2016 AT 12:22 PM
Hi Abdul, thanks for the appreciation. I have resent you the templates.
Best,
Dheeraj
Reply
Ali Ahmad says
AUGUST 20, 2016 AT 10:09 PM
Great works sir. I would also like a copy
Reply
Dheeraj Vaidya says

AUGUST 22, 2016 AT 4:53 PM
hello Ali, have resent you the nancial analysis in excel les.
Reply
hosam says
Hello Vaidya, great work. I would also like a copy
Reply
Dheeraj Vaidya says

Thanks Hosam. Please check your inbox for the nancial analysis
excel sheets.
Andem Daniel Edet says
AUGUST 19, 2016 AT 5:57 PM
Hello Viadya, great work. I would also like a copy.
Thank you
Reply
Dheeraj Vaidya says

AUGUST 20, 2016 AT 12:24 PM
Thanks! i have sent you the templates.

Best,
Dheeraj
Reply
Zaur Makharramov says

AUGUST 19, 2016 AT 9:57 AM
Its great job!!! Thank you very much!!!!
Reply
Dheeraj Vaidya says

AUGUST 19, 2016 AT 5:48 PM
thanks Zaur!
Reply
Bojana says
AUGUST 18, 2016 AT 3:39 PM
Hi Could you please send me the nancial statement analysis template? Graet job. Well
done.
Reply
Dheeraj Vaidya says

AUGUST 20, 2016 AT 12:30 PM
thanks Bojana! I have sent the nancial statement analysis templates to you.
Best,
Dheeraj
Reply
FRED KIGUNDU says

AUGUST 18, 2016 AT 1:26 PM
YOUR SO GOOD, THANKS
Reply
FRED KIGUNDU says
AUGUST 18, 2016 AT 2:25 PM
Dheeraj Vaidya,
Thank you for that analysis, Kindly send me that comprehensive guide on the
nancial analysis. Its so thorough and detailed.
Take care.
Reply
Dheeraj Vaidya says

AUGUST 20, 2016 AT 12:30 PM
Hey Fred, please check your email. I have resent the templates.
Best,
Dheeraj
Reply
Dheeraj Vaidya says

AUGUST 19, 2016 AT 5:50 PM
thanks Fred!
Reply
Saif says
AUGUST 20, 2016 AT 9:19 PM
Kibdly can you plesae send for me the template
Reply
Dheeraj Vaidya says

AUGUST 22, 2016 AT 4:52 PM
Hi Saif, just resent you the excel les.
Reply
Muhammad Awais says

AUGUST 18, 2016 AT 10:31 AM
Great Article and your eort. Please email me the File.
Reply
Dheeraj Vaidya says

AUGUST 20, 2016 AT 12:31 PM
Hi Muhammad, thanks! i have sent the les to you.
Reply
simon says
AUGUST 17, 2016 AT 8:05 PM
Reply
Dheeraj Vaidya says

AUGUST 20, 2016 AT 12:31 PM
done Simon. Please check your email.
Reply
Ajish Kumar M says

AUGUST 17, 2016 AT 11:09 AM
Dear Sir,
very good work that you have done. Its very helpful for the entry level Financial analysts
those who have strong passion to do.
Thank you so much Expecting more article like this from you..
Reply
Dheeraj Vaidya says

AUGUST 17, 2016 AT 5:56 PM
Thanks Ajish!
Reply
Korede Adeshina says

AUGUST 16, 2016 AT 7:09 PM
Hello Sir, I would like to have this material in a downloadable form. Also, I am from
Nigeria, is it possible to pay for your courses using a Nigeria debit card?
Many thanks in advance
Reply
Dheeraj Vaidya says

AUGUST 17, 2016 AT 5:57 PM
Hi Korede,
It is very much possible to pay from Nigerian Debit Card. Just that while registering
and making payment, please choose 2checkout option.
Thanks.
Reply
Irfan Khokhar says

AUGUST 16, 2016 AT 11:06 AM
This is great. can you please share with me the template.
Reply
Dheeraj Vaidya says
AUGUST 16, 2016 AT 6:13 PM
Thanks Irfan. Have resent the nancial statement analysis template
Reply
Aziz says
AUGUST 17, 2016 AT 1:55 PM
Awesome work Dheeraj. Could you Please share the excel templates. Many
thanks
Reply
Dheeraj Vaidya says

AUGUST 17, 2016 AT 5:55 PM
Hi Aziz, i have just mailed you the templates.
Thanks,
Dheeraj
Reply
Sanjay G says
AUGUST 16, 2016 AT 9:45 AM
where do I nd the template, please can you help me locate same.

Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:14 PM
Hi Sanjay, Have resent the nancial statement analysis excel sheets.
Reply
Bach says
AUGUST 16, 2016 AT 9:08 AM
Thank you very much. Could you please send me the templates?
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:14 PM
Hi Bach, thanks! Have resent the nancial statement analysis template
Reply
Jeremie V. Miramonte says

AUGUST 16, 2016 AT 5:42 AM
Good day!
Please let me have also the template / excel copy for the module please..Thanks in
advance sir!
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:14 PM
Sure. Have resent the ratio analysis excel template
Reply
Olawale says
AUGUST 15, 2016 AT 10:18 PM
Thanks for this wonderful presentation, need to move on to the nancial modelling. Good
job. Could you please send me the template? Will denitely connect with you directly.
Regards
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:14 PM
Thanks Olawale! Have resent the nancial statement analysis template.
Reply
KAUSHIK SHARMA says
AUGUST 15, 2016 AT 2:03 PM
Excellent works Please send me as early as possible.
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:15 PM
Hey Kaushik, many thanks. Have resent the Ratio analysis template
Reply
TAREK HASSAN says

AUGUST 15, 2016 AT 12:38 PM
thanks dear for this subjects , you can send to me over my email ID
regards
Tarek
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:15 PM
thanks Tarek. Have resent the templates to you.
Reply
imtiaz says
AUGUST 15, 2016 AT 11:17 AM
Sir, can you please send me the template
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:15 PM
Hi Imtiaz, Have resent the nancial statement analysis template
Reply
Je Kairu says
AUGUST 15, 2016 AT 4:31 AM
Thank you!!!!! Great Job!!! If you have more to share please do
Reply
Dheeraj Vaidya says
AUGUST 16, 2016 AT 6:18 PM
thanks Je. Have shared the nancial statement analysis template in your email
id.
Reply
olaoluwa says
AUGUST 15, 2016 AT 2:54 AM
HEllo Sir, you have done great work! Could you please send me the templates. Thank you!
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:18 PM
thanks Olaoluwa! Have shared the nancial statement analysis template in your
email id.
Reply
Harold T Chipadza says

AUGUST 15, 2016 AT 1:13 AM
Awesome work. May you please send me the templates as well.
Thank you for the eort and keep up the passion
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:19 PM
thanks Harold for the appreciation. I am glad you found this useful. Have shared the
nancial statement analysis template in your email id.
Reply
abhishek says
AUGUST 14, 2016 AT 5:26 PM
Sir, please send me excel, Im not able to nd attachment
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:19 PM
Hey Abhishek, i have sent you the ratio analysis templates.
Reply
MRasmy says
AUGUST 14, 2016 AT 3:35 PM
Great Eort my friend

Could you please pass me the template
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:19 PM
Thanks Mrasmy. Have shared the nancial statement analysis template in your
email id.
Reply
Elias says
Excellent stu, you are brilliant. May you send me the template
Reply
Dheeraj Vaidya says

thanks Elias! have just sent the templates to you.
Reply
Nikhil Kumar says
AUGUST 14, 2016 AT 3:34 PM
Hi Dheeraj,
Awesome work!! Really super helpful. Would really appreciate if you could send me the
excel template for this.
Thanks
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:20 PM
thanks! Have shared the nancial statement analysis template in your email id.
Reply
Wajid Ali says

AUGUST 14, 2016 AT 2:42 PM
Great job
send me templates. it will be very helpful for me. once again its a professional work that
you have done.
Reply
Dheeraj Vaidya says
AUGUST 16, 2016 AT 6:20 PM
Hey Waji, thanks!
have resent you the templates.
Reply
Nekruz Avgani says

AUGUST 13, 2016 AT 5:35 PM
Amazing job! Could u please send me excel templates . Thanks
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:21 PM
thanks Nekruz! have resent you the templates. Please check.
Reply
Darlton says
AUGUST 12, 2016 AT 8:28 PM
Thanks pls could send me the template?
Reply
Dheeraj Vaidya says

AUGUST 16, 2016 AT 6:22 PM
Hey Darlton, can you please check again. i have resent you the templates!
Reply
Amraj Khadka says

AUGUST 11, 2016 AT 11:52 AM
Thanks a lot for the templates, sir
Reply
Dheeraj Vaidya says

AUGUST 11, 2016 AT 2:24 PM
Youre Welcome!
Reply
Dinara says
AUGUST 11, 2016 AT 11:40 AM
It is the great work!!! Could you please send me the templates. Thank you!
Reply
Dheeraj Vaidya says

AUGUST 11, 2016 AT 2:27 PM
Hey Dinara, have sent the ratio analysis excel templates. Please check.
Reply
Amraj Khadka says

AUGUST 11, 2016 AT 11:35 AM
Great job,
Could you please send me the templates
Reply
Satish Gaekwad says

AUGUST 11, 2016 AT 2:04 AM
Hi Dheeraj
Amazing dissection of a topic that most non-nance people nd so complex your eort
to persevere & simplify the core messages is appreciated.
Please also send me the templates.
Thanks
Satish
Reply
Dheeraj Vaidya says

AUGUST 11, 2016 AT 2:28 PM
thanks Satish for the appreciation
Have sent you the templates as well.
Best,
Dheeraj
Reply
Steve Ambassa says

AUGUST 10, 2016 AT 10:39 PM
Hello Sir,
Very nice job thanks again for your share.
Is there any templates downloadable for this guide

Thanks
Reply
Dheeraj Vaidya says
AUGUST 11, 2016 AT 2:27 PM
Thanks Steve. Have resent you the templates.
Best,
Dheeraj
Reply
habeeb says
AUGUST 10, 2016 AT 10:00 AM
Thank you for this nice post. Would love to have the template too.
Reply
Dheeraj Vaidya says

AUGUST 10, 2016 AT 3:04 PM
Hi Habeeb, Have resent the templates. Can you please check?
Reply
habeeb says
AUGUST 11, 2016 AT 12:31 PM
Received. Thank you very much.
Reply
Dheeraj Vaidya says
AUGUST 11, 2016 AT 2:24 PM
Reply
Scott Johnston says

AUGUST 10, 2016 AT 6:08 AM
Done all of these analysis techniques but yours brings it together very nice and neat.
Great job.
Would you be so kind to send me the templates?
Regards,
Scott Johnston
Reply
Dheeraj Vaidya says

AUGUST 10, 2016 AT 3:04 PM
Thank Scott for your kind words! I have sent you the templates again. Please check.
Reply
Niroj Gurung says
AUGUST 10, 2016 AT 1:22 AM
Hi Dheeraj,
Awesome work. Please can you send me the template ?

Many thanks.
Reply
Dheeraj Vaidya says

AUGUST 10, 2016 AT 3:04 PM
thanks Niroj. Have resent the templates.
Reply
Sachin says
AUGUST 10, 2016 AT 12:47 AM
Superb work dheeraj. Please share the excel templates. Thanks
Reply
Dheeraj Vaidya says

AUGUST 10, 2016 AT 3:05 PM
thanks Sachin. I am glad you liked the article. Please check your inbox for the
templates.
Reply
Sanjay says
AUGUST 9, 2016 AT 8:56 PM
Hi Dheeraj, great portal, the content is very well graphically designed. I found some
unanswered queries from your blog. I would be really thankful to you if you can provide
the Ratio Analysis Solved and Unsolved Excel!
Regars,
Reply
Dheeraj Vaidya says

AUGUST 10, 2016 AT 3:05 PM
Thanks Sanjay! have resent you the templates.
Reply
Khoa Do says
Great work Dheeraj.
Thank for sharing
Reply
Dheeraj Vaidya says
Thanks Khoa!
Reply
Francis Ssemaganda says

AUGUST 9, 2016 AT 12:34 PM
So insightful. I will be glad to get a template too
Reply
Francis Ssemaganda says

AUGUST 9, 2016 AT 12:32 PM
Good job sir. kindly share with me the template too.
Reply
Dheeraj Vaidya says

thanks Francis. I have resent you the templates.
Reply
Martin says
AUGUST 9, 2016 AT 12:46 AM
Hi Dheeraj,
Thanks for the great work and for sharing. Please kindly send me the Ratio Analysis
Solved and Unsolved .
Have a nice day.
Thank You
Reply
Dheeraj Vaidya says

Hello Martin, many thanks. have resent the templates.
Thanks,
Dheeraj
Reply
Samuel Mensah Adevor says

Very interesting and informing.Keep it up Sir
Reply
Dheeraj Vaidya says
thanks Samuel!
Reply
Tesleem Adelodun says

AUGUST 8, 2016 AT 12:26 PM
Thanks for this great analysis. Im proud of you. Please send me the Excel template.
thanks
Reply
Dheeraj Vaidya says

Hi, have sent you the templates.

thanks,
Dheeraj
Reply
Dheeraj Vaidya says

done. I have resent the templates

Reply
Cindy Njoga says

I love how you have simplied everything!

Thanks could you please send me the solved and unsolved template.
Reply
Dheeraj Vaidya says

Thanks Cindy. Have resent the templates to you.
Reply
Santosh Kurade says

Thank your so much for explaining in detail. It is very useful material.
Reply
Dheeraj Vaidya says

thanks Santosh!
Reply
Fadhili Wafula Lumongi says

This is a wonderful and comprehensive insight into ratio analysis. Kindly mail me the excel
template.
Reply
Dheeraj Vaidya says

thanks Fadhili.
Reply
Fadhil says
Very detailed and applicable to all level of user. Thank You Dheeraj Vaidya.
Reply
Dheeraj Vaidya says
thanks Fadhil. I am glad you liked this analysis.
Reply
Zewar says
AUGUST 5, 2016 AT 12:25 AM
Hey Dheeraj could you please seand me the excel template.
KR
Zewar
Reply
Dheeraj Vaidya says

AUGUST 5, 2016 AT 11:25 AM
Hi Zewar, I have mailed you the excel templates.
thanks,
Dheeraj
Reply
ronak says
AUGUST 4, 2016 AT 11:55 PM
Hello ,
Dheeraj Sir, great job

Have a nice day.
Thank You
Reply
Dheeraj Vaidya says

AUGUST 5, 2016 AT 11:25 AM
thanks Ronak. Have mailed you the ratio analysis excel templates.
Reply
Papadopoulos Evris says

amazing guide!really good job Mr Dheeraj!Can you send me the solved and unsolved
templates please?
Reply
Dheeraj Vaidya says

AUGUST 5, 2016 AT 11:26 AM
Thanks. Have mailed you the templates.

Reply
Kashif Iqbal says

Very Use full and handy material thanks for great help
Reply
Dheeraj Vaidya says

Thanks Kashif!
Reply
Prasanth Kumar says

Hi Dheeraj Vaidya,
Excellent and you have made an outstanding eort to describe these. Thank you very
much.
Reply
Dheeraj Vaidya says
Thanks Prasanth!
Reply
Pritesh says
Thank you very much for explaining this in detail.
Reply
Dheeraj Vaidya says

thanks Pritesh!
Reply
Sudeep Kumar Malick says

AUGUST 4, 2016 AT 8:38 AM
Great job. Thanks a lot

Reply
Dheeraj Vaidya says

AUGUST 4, 2016 AT 11:09 AM
Thank you Sandeep!
Reply
Venkat says
AUGUST 4, 2016 AT 12:25 AM
Good work and will be helpful for many! Kindly send me the solved and unsolved
templates.
Reply
Dheeraj Vaidya says

AUGUST 4, 2016 AT 11:10 AM
Hi Venkat, thanks. I have sent you the ratio analysis templates.
Reply
raj says
AUGUST 3, 2016 AT 11:57 PM
Hello ,
Dheeraj

Have a nice day.
Thank You
Reply
Dheeraj Vaidya says

AUGUST 4, 2016 AT 11:11 AM
Thanks Raj. I have sent you the ratio analysis template.
Reply
Neeraj Kumar Tiwari says

Dear Dheeraj
You are simply doing great job

Hats o to you
Regards
Neeraj Tiwari
Credit Rating Analyst
Brick Works Rating
Reply
Dheeraj Vaidya says
Thanks Neeraj for your kind words!
Reply
christopher says
Thank you Sir
Reply
Dheeraj Vaidya says

Reply
anil says
brilliant job. very useful and clear for non accounting people. keep going congratulations
Reply
Dheeraj Vaidya says

thanks Anil!
Reply
Vamsi Krishna says

AUGUST 3, 2016 AT 11:15 AM
Brilliant post. Love your website. Keep up the very informative and insightful articles
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 11:36 AM
thank you Vamsi! i am glad you nd these informative
Best,
Dheeraj
Reply
Seyi says
AUGUST 3, 2016 AT 10:44 AM
Thanks Dheeraj for these informative , well detailed ,
I will appreciate if I can get the PDF version of your work.
Thanks
Reply
Dheeraj Vaidya says

AUGUST 11, 2016 AT 3:16 PM
Hi Seyi,
Unfortunately, I dont have a PDF version as of now. Let me see if i can prepare one.
Thanks,
Dheeraj
Reply
Ethan Lai says

AUGUST 3, 2016 AT 4:09 AM
So solid work! Thanks for giving your guides to those who can really benet a lot.
Reply
Dheeraj Vaidya says
AUGUST 3, 2016 AT 10:52 AM
thanks Ethan. I am glad you liked it!
Reply
Carl says
AUGUST 3, 2016 AT 12:50 AM
Thank you Mr. Dheeraj for this fantastic post. This is helping us alot in our endeavors in
knowing the fundamentals in investment strategy. Your continuous sharing of knowledge
is highly appreciated. Thank you sir.
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:53 AM
thanks Carl. do let me know in case of any questions.
Best,
Dheeraj
Reply
Anasya Stoyanova says
AUGUST 2, 2016 AT 11:58 PM
Your blog is an absolute gem! It has been very helpful!
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:53 AM
thanks Anasya!
Reply
Priti Ragini says

AUGUST 2, 2016 AT 11:34 PM
sir
Kindly send me a ratio analysis excel sheet . It would be a great favor to me.
with regards
Priti
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:58 AM
Hi Priti,
Have sent you the templates again.
Best,
Dheeraj
Reply
Samuel Fojule says

AUGUST 2, 2016 AT 11:09 PM
Great document. Concise and valuable. Thanks
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:58 AM
thanks Samuel!
Reply
wasiu amusa says

AUGUST 2, 2016 AT 10:49 PM
Thanks Dheeraj Vaidya; this is amazing!

Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:53 AM
thank you
Reply
gaurav says
Wonderful Sir,
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:57 AM
Hi Gaurav,
Have sent you the ratio analysis templates again.
Thanks,
Dheeraj
Reply
Mohammed Akther Hussain says
Dheeraj Vaidya Saheb.

Hum ap ko aur ap ki taleem ko tahey dil sey Salam Karteen hein.
Hum bahuth khush huey khaz kar key ap IIM AUR IIT SEY TALEEM HASIL KAREY HEIN
HUM AP KA TAHEY DIL SEY ADAB KAR TEY HEIN KHUBOL KAR YEH.
MEIN AKTHER HUSSAIN (INDIAN FROM HYDERABAD)SEY HUN MAGER SAUDI ARABIA
MEIN KAM KAR RAHA HUN.
SHUKRIA.
AKTHER HUSSAIN,Mcom,MBA,
Reply
Dheeraj Vaidya says

AUGUST 3, 2016 AT 10:56 AM
Thanks Akther. Glad you liked the article.
Best,
Dheeraj
Reply
Derek Broomes says

Please make it easier to download the materials:
Reply
Dheeraj Vaidya says
AUGUST 3, 2016 AT 10:57 AM
Hey Derek,
I have resent the material to you.
Best,
Dheeraj
Reply
Pratik Biyani says

You are simply so Awesome! You are doing a great job for the investing community
Thank you
Reply
Dheeraj Vaidya says

thanks Pratik! have sent you the template.
Reply
Hemendra says
Thank you for the great lesson.can you send me solved and unsolved templates.tks
Reply
Dheeraj Vaidya says

My pleasure Hemendra. Have sent you the template at your email id.
Thanks.
Reply
Busani Bakani says

AUGUST 2, 2016 AT 12:54 PM
Good platform indeed
Reply
Dheeraj Vaidya says

AUGUST 2, 2016 AT 12:57 PM
Thanks Busani!
Reply
Peter says
Hi Dheeraj, usefull article and comments. To validate them with Excel, can you
please sned me the le? It doesnt work through download. Thank you. Have
a nice day
Reply
Dheeraj Vaidya says

Hi Peter, many thanks! please check your email for the nancial analysis
templates.
Reply
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Ratio Analysis - Most Comprehensive Guide (Excel Based)

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RATIO ANALYSIS MOST

Statement Analysis as used by Investment Bankers and Equity Research Analysts.

NOTE - Recommended Courses

3. Equity Research Training - 11 Course Bundle, 40+ hours Videos

4. Private Equity Training - 9 Course Bundle, 35+ hours Videos

Vertical Analysis Horizontal Analysis Trend Analysis

I want to Learn Ratio Analysis

Solvency Ratio Operating Performance Risk Analysis

I want to learn the following

Concept Colgate Case Studies

Ratio Analysis / Financial Statement

template for the ratio analysis tutorial

Download Colgate Ratio Analysis

Colgates SEC Filings from here.

Step 4 Happy Learning!

I have made an easy navigation for you to learn Ratio Analysis.

What is Financial Statement Analysis / Ratio Analysis

Vertical Analysis or Common Size Statements

Liquidity Ratio Analysis

Solvency Ratio Analysis

#1 Current Ratio Analysis

#2 Quick Ratio Analysis

#3 Cash Ratio Analysis

#4 Receivables Turnover Ratio Analysis

#6 Inventory Turnover Ratio Analysis

#8 Accounts Payable Turnover Ratio Analysis

#10 Cash Conversion Cycle

Ratio Analysis Operating Performance

Operating Eciency Ratio Analysis

#11 Asset Turnover Ratio Analysis

#12 Net Fixed Asset Turnover

#13 Equity Turnover

Operating Protability Ratio Analysis

#14 Gross Prot Margin

#16 Net Margin

#17 Return on Total Assets

#18 Return on total equity

#19 Return on Equity or Return on Owners Equity

#20 Dupont ROE

Ratio Analysis Risk

# 21. Operating Leverage

# 22. Financial Risk Financial Leverage

# 23. Total Leverage

# 24. Leverage Ratio or Debt to Equity Ratio Analysis

# 25. Interest Coverage Ratio Analysis

# 26. Debt Service Coverage Ratio (DSCR)

Ratio Analysis External Liquidity Risk

#27 Bid Ask Spread

#28 Trading Volume

Ratio Analysis Growth

#29 Sustainable Growth

What is Financial Statement Analysis /

The purpose of Financial Statement Analysis (Ratio Analysis) is to evaluate management

performance in Protability, Eciency and # Rhsk

Although nancial statement information is historical, it is used to project future

expressed as a percentage of Total Assets or Total Liabilities (please note Total

Assets = Total Liabilities)

Horizontal Analysis It compares the two nancial statements (income statement,

balance sheet) o determine the absolute change as well as percentage changes.

other numbers. It provides meaningful relationship between individual values in the

the nancial statement analysis.