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D&A is different on the I/S and CF, which to use ??

When the D&A figure is different from the I/S to CF statements, which one should I use on the income statement when modeling forward and what is the reason for the D&A figures being different?

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by Guest 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

If the purpose is to calculate EBITDA, then we always use D&A from the CF Statement because that is the better indication of the "true" non-cash amount of D&A. D&A on the IS and CF really should be the same and when it's not it's usually due to a specific accrual method of acc... If the purpose is to calculate EBITDA, then we always use D&A from the CF Statement because that is the better indication of the "true" non-cash amount of D&A. D&A on the IS and CF really should be the same and when it's not it's usually due to a specific accrual method of accounting that differs from the non-cash amount. If the difference is small, then we generally don't worry about the discrepancy - of course, still use CF figure for EBITDA. Obviously use IS figure when re-casting historical financials for profitability, EPS, etc.

If the difference is big, we would need to seek additional clarification from the company management. Read More

by WST Expert 1.

added 11 years ago

CAGR Question?

if you calculate CAGR and it returns a #NUM!, what shall I do?

by Guest 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

What is your beginning figure, ending figure and number of years increment?

by WST Expert 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

-10.8, 45.5, 10yrs

by Guest 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

The negative value forces CAGR to be impossible to calculate. See this link for a good explanation and options: http://www.experiglot.com/2008/09/15/ca ... -negative/ How to calculate a compound annual growth rate when the beginning value is negative? The basic answer is that you can’t. Why? Let... The negative value forces CAGR to be impossible to calculate. See this link for a good explanation and options:

http://www.experiglot.com/2008/09/15/ca ... -negative/

How to calculate a compound annual growth rate when the beginning value is negative?
The basic answer is that you can’t. Why?
Let’s look at the formula for calculating CAGR:

CAGR = (ending amount / beginning amount)(1 / # of years) – 1

Mathematically, because you’re taking a root of a number, if you have a negative beginning amount and a positive ending amount, you’d be taking the root of a negative number. Unless you have an odd # of years, you can’t compute this mathematically without going into imaginary numbers

Even if you do happen to have (or force) a negative # of years, the result will also be a negative growth rate, which also doesn’t make sense in terms of what’s going on.

The best way to deal with situations where you have a negative initial value is to just footnote it and calculate CAGR based on the first positive initial value you have. So, for example, if you had a project that lost $500 in year 2003, then gained $100 in year 2004, and ended in year 2007 with $500, you might write the following:

Revenues grew from $100 to $500 during the period from 2004-2007 (CAGR of 71%). Note that this excludes the initial 2003 year, when the project lost $500.
Remember, your goal is to present an accurate picture of what’s going on. That almost always means using a few more words to reflect and explain reality rather than just provide a single, calculated figure. Read More

by WST Expert 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.

by Guest 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

[quote="jleonard20":3p03beyg]does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.[/quote:3p03beyg] There may very likely be a conflict between the two add-ins. We recommend disabling the k... [quote="jleonard20":3p03beyg]does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.[/quote:3p03beyg]

There may very likely be a conflict between the two add-ins. We recommend disabling the keyboard shortcuts using Bloomberg's Hot Key Manager. Afterwards, be sure to restart Excel. Here's a screenshot for reference:

[img:3p03beyg]http://i.imgur.com/oR5fQwa.jpg[/img:3p03beyg] Read More

by WST Expert 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

also looking at Wendy's (WEN) 10K, do you model accumulated deficit the same why as retained earnings? and how to model treasury stock on B/S?

by Guest 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

accumulated deficiency simple means negative retained earnings balance usually, so, yes, treat that as RE. Treasury Stock is simply repurchased shares, so the line item in CFF flows through here. Please refer to our Core Model class for more information: http://www.wallst-training.com/self-stu ... l... accumulated deficiency simple means negative retained earnings balance usually, so, yes, treat that as RE.
Treasury Stock is simply repurchased shares, so the line item in CFF flows through here.
Please refer to our Core Model class for more information:
http://www.wallst-training.com/self-stu ... l#package3

Thank you. Read More

by WST Expert 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

let's say beginning treasury stock is (409,449) and the company had a 275mm stock buy back at $9.26, the # of shares repurchased were 29.7mm. what would my ending treasury stock balance be for next year on B/S?

by Guest 1.

added 11 years ago

Re: D&A is different on the I/S and CF, which to use ??

treasury stock on BS is a DOLLAR amount. so the change would be the total dollar amount in stock purchased that year. of course the negative number becomes a bigger negative number

by WST Expert 1.

added 11 years ago

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