Generally speaking, you will go with the company's classification of working capital, as they know best what is inside each line item. This can clearly be ascertained by looking at their CFO on the Cash Flow Statement to see where they placed the items. THey are usually grouped together with some so... Generally speaking, you will go with the company's classification of working capital, as they know best what is inside each line item. This can clearly be ascertained by looking at their CFO on the Cash Flow Statement to see where they placed the items. THey are usually grouped together with some sort of indentation or heading within CFO to indicate Working Capital.

For Share Repurchases, using trailing EPS to guesstimate future stock price that the company buys back their stock at is fair - just use LTM (last twelve months) PE multiple to calculate Implied Stock Price. Read More

Thank you for your reply.
I just want to make it clear. We will not use the current year EPS since it will create circular reference, and we use the trailing EPS instead?

Correct. Using this year's EPS creates a circ because the amount of shares repurchased affects the new share count which is used to calculate that year's EPS, thus, a circ is created. Using trailing EPS solves this issue and since everything is an estimate anyway, you won't be wrong by that much.