### Financial Modeling Topics

Topics related to general financial modeling including standalone projection modeling and nuances & clarifications

### Subtopics

### Last 10 posts

**Re: Excel Formula of running a scenario analysis**

I'm now at the end of the DCF model and I'm about to run a scenario analysis with changes of some variables, e.g. dividend payout ratio and beta. So if I want to set up a table with different combinations of these two variables, is there any excel formula that I can use to fill in the intrisic value... Read More

**DCF modeling in an M&A situation**

I’m doing a DCF model for a deal, a briefing of the case is as followed: 1. The listed company acquired company A for 39% shares in 2016, therefore there is a profit of associate in 2016. 2. The listed company acquired the rest 61% shares of company A in 2017, the consolidation date is 31/8/20... Read More

**Waterfall distribution IRR**

I have recently came across a GP structure where the 2nd level waterfall distribution is based on XIRR. But it specifically states that the XIRR is not compounded. I thought inherent in the XIRR calculation is compounding effect. How to build a model that satisfies the non-compounding XIRR?

**Question on the model**

Question on the model: 1. For the cash flow statement, I understand the min cash balance I should input the amount the firm needs to continue operations. But trying to better understand the mandatory debt repayment cell and what is most appropriate to enter here? 2. For the interest calculati... Read More

**Quarterly Modeling - Current Portion LT Debt**

When modeling a company and making projections using quarterly financials, should the quarterly balance sheet item for Current Portion of LT Debt include the next 4 quarters of mandatory payments? If so, to not add debt to the balance sheet, do you then decrease the Long Term Debt liability by the ... Read More

**WST macro query**

Hi everyone, Does anyone this problem whereby if they use WST macro's formula auditing function ie. Control + Shift + [ Should the formula get too long, it would be obscured by the window pane. For example, see (https://dl.dropboxusercontent.com/u/17604288/Problem.jpg) Any solutions to thi... Read More

**ROIC**

Why does ROIC (net income-dividends)/(debt+equity) include all stakeholders in the denominator but only equityholders in the numerator?

**Why is Long Term Liabilities and LT Compensation included in changes in Working Capital?**

I thought Working Capital encompassed only current assets-current liabilities

**Why Is Minority Interest a positive for cash from operating activities?**

Estimated Projected Fiscal 2016 2017 2018 2019 2020 Calculation Cash From Operating Activities: Net Income $ 730 $ 801 $ 868 $ 937 $ 1,021 From Income Statement Plus: Depreciation & Amortization 718 738 760 785 814 ... Read More

Convertible Bonds

I am building a projection model and at the stage of building the debt schedule. Now, I have a situation where the company has convertible bond (CB) being classified on its balance sheet into liability portion and equity portion. Now, I am a bit confused. EX, the company raised $1,000 of CB, incl... I am building a projection model and at the stage of building the debt schedule. Now, I have a situation where the company has convertible bond (CB) being classified on its balance sheet into liability portion and equity portion. Now, I am a bit confused. EX, the company raised $1,000 of CB, includes issuance costs, but that total amount is being split up into, say, $800 in long term debt and $200 in equity.So, for building the debt sweep projection, what amount should I use for the CB? $1,000 or $800, but if using $800 and the CB carries an interest coupon then would that incorrectly lowers the interest expense? Many thanks. Read More