From the course: Financial Modeling Foundations

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Adding toggles to a financial model

Adding toggles to a financial model - Microsoft Excel Tutorial

From the course: Financial Modeling Foundations

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Adding toggles to a financial model

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- [Narrator] Often times when building a financial model we need to be able to add options to adjust the model based on our expectations about the future. A toggle is one easy way to do exactly that. What we've added here is a toggle. This toggle is based on our expectations about the future of this company and the economy. So we have three different scenarios. Scenario one is a gray sky case. In another words if things aren't going so well for the company. Scenario two is our base case the most likely outcomes that we foresee. And then scenario three is our blue sky case where everything is going well. Now this toggle is related to other parts of the sheet. If we trace the dependents using the Formulas tab we'll see if we scroll down that the scenario directly impacts our revenue growth. And so if we change from scenario three to scenario one for example well then our revenue shifts from being 15% in 2018 all the way down to 2.8% in 2022. Similarly if we use scenario two now our…

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