Recent Changes

Monday, January 15

  1. page slides edited ... This page includes some of my project finance, corporate and energy analysis slides that I use…
    ...
    This page includes some of my project finance, corporate and energy analysis slides that I use for various courses. I generally spend more time on financial models to demonstrate concepts and flip charts to discuss concepts. I have make power point slides for financial modelling and energy, but many of the presentations do not follow the FAST religion. Specifically, the slides do not S--structuring concepts and sometime the concepts are not presented in a transparent method. Also if the A means appropriate, sometimes the slides have too much detail. But now I am trying to put together more structured slides. To practice I have recorded videos associated with the slides.
    Project Finance Lecture:
    ...
    Finance Modelling.pptx} {Project Finance Modelling1.pptx} {A-Z Modelling Course.pptx}
    The videos below describe the power point slides that I use for an overview of project finance. I start with risk analysis and suggest that a few famous and old case studies can give a good background on different types of risks in projects. Then I move to debt structuring and discuss various issues in the sizing, funding, repayment, interest rates and credit protections. For both the risk case studies and the structuring, you can find much more detail in other places on the website.
    {PF Mechanics 1.zip} {PF Mechanics 2.zip} {3. Case Studies.zip} {Project Finance Modelling Slides.zip}
    (view changes)
    12:58 am
  2. page Corporate Finance Model Exercises edited ... When using case studies to study risks and valuation, I think you can learn a lot from cases t…
    ...
    When using case studies to study risks and valuation, I think you can learn a lot from cases that were originally thought to be good business strategy or well structured and became dismal failures. Examples are First Solar and Constellation. Similarly, a different way to learn corporate finance model techniques is to see what not to do.
    This may be somewhat less boring than working through each of the detailed exercises. Looking at a badly structured model and fixing the model is demonstrated in the videos and the files below.
    {Basic Bad Solar{Bad Model Example.xlsm} {Financial{Bad Models.xlsx} {Bad Corporate Model Re-formatted.xlsm}Example.xlsm}
    Lesson Set 2: Practical Problems in Acquiring Historic Data from PDF Files and SEC Reports
    One of the real world challenges in creating a financial model is to acquire historic accounting data in an efficient and flexible manner. I am convinced that it is is very instructive to put together as many historic years as possible to evaluate trends, volatility of returns and develop downside cases. There are a few ways to get historic data these days. One way is to go the an internet site like marketwatch.com and put together the data. If your company must register with the U.S. securities and exchange commission, you can get data back through 1994.
    (view changes)
    12:39 am
  3. file Bad Models.xlsx uploaded
    12:36 am
  4. 12:35 am
  5. page Corporate Finance Model Exercises edited ... If you fill in all of the exercises and send me the files along with a small fee, I will publi…
    ...
    If you fill in all of the exercises and send me the files along with a small fee, I will publish your name on my website so you can show it to your boss or your future employer. I will also get you an official badge. An illustration of how the models work is shown below. The yellow tabs in the excerpt show the items to fill in. The completed sheets are next to the yellow tabs (I hope I did not make mistakes).
    Lesson Set 2: Leaning from Corporate Finance Models that are not Flexible, Not Accurate, Not Structured and Not Transparent
    ...
    to do. This
    This
    may be
    {Basic Bad Solar Example.xlsm} {Financial Model Re-formatted.xlsm}
    Lesson Set 2: Practical Problems in Acquiring Historic Data from PDF Files and SEC Reports
    (view changes)
    12:34 am
  6. page Corporate Finance Model Exercises edited ... If you are starting out in modelling and have not yet made a model, the files and videos below…
    ...
    If you are starting out in modelling and have not yet made a model, the files and videos below are intended to allow you to see the model structure, the importance of a historic timing switch, the essential nature of separating operating cash flows from financing cash flows and other issues including different financing issues. The set of videos and files also introduce you to some difficult financing issues including circularity associated with interest expense and holding a constant capital structure. Files associated with the videos are shown first followed by video links that walk through the various lessons.
    If you fill in all of the exercises and send me the files along with a small fee, I will publish your name on my website so you can show it to your boss or your future employer. I will also get you an official badge. An illustration of how the models work is shown below. The yellow tabs in the excerpt show the items to fill in. The completed sheets are next to the yellow tabs (I hope I did not make mistakes).
    Lesson Set 2: Leaning from Corporate Finance Models that are not Flexible, Not Accurate, Not Structured and Not Transparent
    When using case studies to study risks and valuation, I think you can learn a lot from cases that were originally thought to be good business strategy or well structured and became dismal failures. Examples are First Solar and Constellation. Similarly, a different way to learn corporate finance model techniques is to see what not to do. This may be somewhat less boring than working through each of the detailed exercises. Looking at a badly structured model and fixing the model is demonstrated in the videos and the files below.
    {Basic Bad Solar Example.xlsm} {Financial Model Re-formatted.xlsm}

    Lesson Set 2: Practical Problems in Acquiring Historic Data from PDF Files and SEC Reports
    One of the real world challenges in creating a financial model is to acquire historic accounting data in an efficient and flexible manner. I am convinced that it is is very instructive to put together as many historic years as possible to evaluate trends, volatility of returns and develop downside cases. There are a few ways to get historic data these days. One way is to go the an internet site like marketwatch.com and put together the data. If your company must register with the U.S. securities and exchange commission, you can get data back through 1994.
    (view changes)
    12:17 am
  7. page Project Finance Model Exercises edited ... {David Lee.xlsm} {A-Z Part 2 Circular Exercise.xlsm} {Circular Mirror Template.xlsm} {A-Z M…
    ...
    {David Lee.xlsm} {A-Z Part 2 Circular Exercise.xlsm} {Circular Mirror Template.xlsm} {A-Z Modelling Course.pptx}
    {PF Exercise.JPG}
    ...
    Leaning from modelsProject Finance Models that are
    ...
    Not Transparent
    A

    When using case studies to study risks and project finance structure, I think you can learn a lot from cases that were originally thought to be good business strategy or well structured and became dismal failures. Examples are Dabhol and Petrozuata. Similarly, a
    different way
    ...
    detailed exercises. Winson
    Winson
    Churchill said
    {Basic Bad Solar Example.xlsm} {Financial Model Re-formatted.xlsm}
    Lesson Set 3: Comprehensive Sculpting and Circular Reference Resolution
    (view changes)
    12:14 am
  8. page Corporate Finance Model Exercises edited ... For each of the above subjects, video links and files that you can use in working through the …
    ...
    For each of the above subjects, video links and files that you can use in working through the issues are listed on this page.
    The on-line lessons are free which may be a really bad idea for me. I have been told that if I somehow charged money for the courses you would think they are more valuable. This is complete rubbish and I expect that you can get a lot more out of these exercises than other companies that spend a lot of money on marketing and being flashy. But, if you have completed exercises and you want me to verify that you really are a good modeller I will do this for a modest fee. If you want to be registered as a modelling expert that will be published in the website and verified for your employment, send me an e-mail to edwardbodmer@gmail.com.
    Revised Lesson Set 1: Building a Standard Corporate Finance Model
    After I published my exciting novel on corporate and project finance modelling, I made a lot of videos to go along with the videos. I did not do this in a professional manner -- too much dog barking in the videos and too much swearing. I think the videos did were often difficult to follow, they did not have any corporate finance theory as to why you are following various procedures and they did not have examples of what not to do. After various comments about background music, quality, unprofessionalism etc. I have began to make a set of revised videos. These videos and the associated excel sheets and the associated power point slides will be presented below. I have included advanced issues as well as basic issues in these videos.
    If you are starting out in modelling and have not yet made a model, the files and videos below are intended to allow you to see the model structure, the importance of a historic timing switch, the essential nature of separating operating cash flows from financing cash flows and other issues including different financing issues. The set of videos and files also introduce you to some difficult financing issues including circularity associated with interest expense and holding a constant capital structure. Files associated with the videos are shown first followed by video links that walk through the various lessons.
    If you fill in all of the exercises and send me the files along with a small fee, I will publish your name on my website so you can show it to your boss or your future employer. I will also get you an official badge. An illustration of how the models work is shown below. The yellow tabs in the excerpt show the items to fill in. The completed sheets are next to the yellow tabs (I hope I did not make mistakes).
    Lesson Set 2: Practical Problems in Acquiring Historic Data from PDF Files and SEC Reports
    One of the real world challenges in creating a financial model is to acquire historic accounting data in an efficient and flexible manner. I am convinced that it is is very instructive to put together as many historic years as possible to evaluate trends, volatility of returns and develop downside cases. There are a few ways to get historic data these days. One way is to go the an internet site like marketwatch.com and put together the data. If your company must register with the U.S. securities and exchange commission, you can get data back through 1994.
    This lesson set walks you through acquiring data from PDF files and putting together many years of data in a consistent format. In addition to acquiring data from PDF files, the lesson set demonstrates how to acquire data from companies that make filings to the Securities and Exchange Commission in the U.S. You can receive credit for this lesson set simply by sending in a completed set of historical financial statements along with the original source of the data. If you do this and send me the files I will put your name on the page of the website that lists the star financial analysts who have completed a lesson. Here are the steps for getting a nice set of financial statements put together:
    1. Find the financial statements and get them with Crome (it works better than Firefox)
    2. Copy the data into excel and arrange statements together (e.g. all income statements in first set of sheets, followed by balance sheet etc.)
    3. Use the Read PDF excel file to format the financial statements.
    4. Put all of the statements together -- put all income statements in one file; balance sheets in second file etc.
    5. Get the UNION function and the INDMAT function into your file from the Read PDF file.
    6. Arrange sections of each statement with a few lines and have a lot of blanks. eg. operating section of income statement, current assets of balance sheet.
    7. Use the UNION function to put together a common set of titles.
    8. Use the INDMAT function to put together data for different years with common titles.
    9. Copy and paste as values in new file for analysis.
    Videos Associated with Lesson Set 2: Reading Financial Statements Course:
    Videos with this lesson set are boring and have some sound quality problems and I admit this, sorry. I have left them on the website anyway. Perhaps the idea of reading in financial statements from PDF files and from the SEC is not really interesting. However, efficient use of: (1) the READ PDF file to get data from the PDF's on the internet and get the data as quickly as possible into excel is a very practical issue; (2) putting financial statements together from different years when the titles change is a very real world pain and is solved with the important UNION function; (3) quickly arranging the data itself after putting together the titles with the UNION function is very helpful and is accomplished with the INDMAT function. These three things are all made possible with functions and macros that are included in the READ PDF file.
    Even with all of these tools, putting together financial statements is a pain. But it is a very real problem and anything to help this problem is I think useful. If you go through the videos and then try an example I think you can really improve your efficiency.
    Downloading Data from Alternative Sources
    ReadPdf.xlsm
    https://www.youtube.com/watch?v=fPcC8gbQIKA
    Converting to Excel with Read Pfd File
    ReadPdf.xlsm
    https://www.youtube.com/watch?v=TauokBNVwG4
    Arranging Data with ALT E, M Shortcut
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=RT0QpDF1bkI
    Using the Important UNION Function
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=_NE-f0CIe48
    Cleaning Up files
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=Oubt5y-kKts
    Graphing Financial Data
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=cGHSwU8mzuU
    Financial Ratio Analysis
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=XyLxzwQtY2M
    Files Association with Reading Financial Statements Course - Parts 1 to 7:
    {Carlsberg Raw Data.xlsx} {Carlsberg Raw Data.xlsx} {Carlsberg Raw Data Formatted.xlsm} {Carlsberg Raw Data Arranged.xlsm} {Carlsberg Raw Data Union and INDMAT.xlsm} {Read PDF to Excel.xlsm} {Format SEC.xlsm}

    Lesson Set 1: Building a Corporate Finance Model
    If you are starting out in modelling and have not yet made a project finance model, the files and videos below are intended to allow you to see the general structure and design of a corporate model. The essential element of corporate modelling is presentation of history alongside the forecast, smooth transition from history to forecast and development of alternative structures for the assumptions. Difficult issues in corporate modelling involve depreciation, setting target capital structures, circularity from interest expense and interest income. The exercises begin with a simple case that does not have any history and then demonstrate how to add history to the model.
    ...
    The files below include blank exercises as well as the completed equations. Unlike some of the newer lessons, I have included separate files for various elements of making a model including use of historic switches, cash flow analysis, incorporating minimum cash flow constraints in the model, and using risk analysis. Exercise that works through how to begin with demand and then work through variable costs and fixed costs in creating a financial model from different pages. Most files include a blank page that you are supposed to fill out that is coloured in yellow. If you want credit for your work, you should fill out the things in yellow.
    {Exercise 1 - Building a Basic Corporate Model.xlsm} {Exercise 1b - Corporate Model - Financing and Minimum Cash.xlsm} {Exercise 2 - Simple Corporate Model.xls} {Exercise 2 - Corporate Model -WC, Min Cash.xlsm} {Exercise 3 - Corporate Model with History.xlsx} {Exercise 4 - Cash Flow Plug.xlsm} {Exercise 5 - Model Exercise with Capacity.xlsm} {Exercise 6 - Model with Working Analysis.xlsm} {Exercise 7 - Corporate Exercise with Minimum.xlsm} {Exercise 3 - Basic Model with WC.xls} {Exercise 5 - One Way Data Tables from Macros.xlsm} {Exercise 1b - Corporate Model - Financing and Minimum Cash.xlsm}
    Lesson Set 2: Practical Problems in Acquiring Historic Data from PDF Files and SEC Reports
    One of the real world challenges in creating a financial model is to acquire historic accounting data in an efficient and flexible manner. I am convinced that it is is very instructive to put together as many historic years as possible to evaluate trends, volatility of returns and develop downside cases. There are a few ways to get historic data these days. One way is to go the an internet site like marketwatch.com and put together the data. If your company must register with the U.S. securities and exchange commission, you can get data back through 1994.
    This lesson set walks you through acquiring data from PDF files and putting together many years of data in a consistent format. In addition to acquiring data from PDF files, the lesson set demonstrates how to acquire data from companies that make filings to the Securities and Exchange Commission in the U.S. You can receive credit for this lesson set simply by sending in a completed set of historical financial statements along with the original source of the data. If you do this and send me the files I will put your name on the page of the website that lists the star financial analysts who have completed a lesson. Here are the steps for getting a nice set of financial statements put together:
    1. Find the financial statements and get them with Crome (it works better than Firefox)
    2. Copy the data into excel and arrange statements together (e.g. all income statements in first set of sheets, followed by balance sheet etc.)
    3. Use the Read PDF excel file to format the financial statements.
    4. Put all of the statements together -- put all income statements in one file; balance sheets in second file etc.
    5. Get the UNION function and the INDMAT function into your file from the Read PDF file.
    6. Arrange sections of each statement with a few lines and have a lot of blanks. eg. operating section of income statement, current assets of balance sheet.
    7. Use the UNION function to put together a common set of titles.
    8. Use the INDMAT function to put together data for different years with common titles.
    9. Copy and paste as values in new file for analysis.
    Videos Associated with Lesson Set 2: Reading Financial Statements Course:
    Videos with this lesson set are boring and have some sound quality problems and I admit this, sorry. I have left them on the website anyway. Perhaps the idea of reading in financial statements from PDF files and from the SEC is not really interesting. However, efficient use of: (1) the READ PDF file to get data from the PDF's on the internet and get the data as quickly as possible into excel is a very practical issue; (2) putting financial statements together from different years when the titles change is a very real world pain and is solved with the important UNION function; (3) quickly arranging the data itself after putting together the titles with the UNION function is very helpful and is accomplished with the INDMAT function. These three things are all made possible with functions and macros that are included in the READ PDF file.
    Even with all of these tools, putting together financial statements is a pain. But it is a very real problem and anything to help this problem is I think useful. If you go through the videos and then try an example I think you can really improve your efficiency.
    Downloading Data from Alternative Sources
    ReadPdf.xlsm
    https://www.youtube.com/watch?v=fPcC8gbQIKA
    Converting to Excel with Read Pfd File
    ReadPdf.xlsm
    https://www.youtube.com/watch?v=TauokBNVwG4
    Arranging Data with ALT E, M Shortcut
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=RT0QpDF1bkI
    Using the Important UNION Function
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=_NE-f0CIe48
    Cleaning Up files
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=Oubt5y-kKts
    Graphing Financial Data
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=cGHSwU8mzuU
    Financial Ratio Analysis
    Carlseburg.xlsm
    https://www.youtube.com/watch?v=XyLxzwQtY2M
    Files Association with Reading Financial Statements Course - Parts 1 to 7:
    {Carlsberg Raw Data.xlsx} {Carlsberg Raw Data.xlsx} {Carlsberg Raw Data Formatted.xlsm} {Carlsberg Raw Data Arranged.xlsm} {Carlsberg Raw Data Union and INDMAT.xlsm} {Read PDF to Excel.xlsm} {Format SEC.xlsm}

    Lesson Set 3: Resolving Circularity in Models and Establishing Capital Structures
    Many corporate models make the unrealistic assumption that capital structure changes depending on the performance of a company. For example, if a company has high returns the cash builds up. This negates the return on equity, equity cash flow and earnings per share forecasts. Instead you can compute the cash flows with equity issues to maintain a given capital structure.
    (view changes)
    12:09 am

More