General External Sources of Capital

Here´s a diagram that shows the different sources of external capital available to companies according to: business stage, cost and financial flexibility.

ROIC Decay Analysis

ROIC Decay Analysis is useful to identify the best-performance companies within an industry and their capability to maintain their competitive advantage over time. More Information: https://lnkd.in/eaSABsy

Loan Life Coverage Ratio

Loan Life Coverage Ratio (LLCR) provides lenders with a measure of the number of times the FCFs of a project can repay the debt over the life of the loan. The higher LLCR the stronger FCFs are relative to the amount of debt outstanding. More posts on: https://lnkd.in/eaSABsy

Modeling Selling, General & Administrative Expenses

Financial Modeling: Useful tool when modeling some expenses. Helps us reflect the margin improvements that expense dilution generates in some companies.

Waterfall Depreciation Model

When projecting PP&E for a Company, one must be careful about all the assumptions involved in CapEx and Depreciation expense.

Since Financial Modeling consists in keeping balance between reality and simplicity, I´ve developed a fully automated financial model that spreads out the depreciation expense related to CapEx made in the projection years. This helps a lot since a real Depreciation Expense Schedule has a direct impact in the Present Value of FCFs because of the "Tax Shield" associated to it and therefore an impact in the value of the company. Besides, this model helps the analyst take better assumptions regarding the terminal values and parameters related to PP&E, since it helps to get a grasp on how the PP&E will end up in the classic 5Y projection period.

If any is interested in this model, please sent an e-mail to lmiguelzuluaga@gmail.com or a private message in Linkedin. I´d be glad to share it with you.

Compound Interest

Diluted EPS: Convertible Debt Instruments

Necessary tweaks when calculating Diluted EPS for a company that has issued Convertible Debt Instruments.