Re: Enhancements to the core model - Part II tax schedule
Yes, correct. Except that technically DTA and DTL changes are not part of working capital - they usually fall under "non-cash items". Still under CFO category, but below NI, above working capital. Remember, anything that changes on the BS must change somewhere on the CFS.

Enhancements to the core model- Part II EVA analysis
Hi, I am watching the video - EVA analysis. The total capital (debt + equity) figures that you provided in the downloaded template are different from the figures that are showing in your template on the video. Thus, I have a different valuation base on the downloaded template. For 2006, the figure ... Hi,

I am watching the video - EVA analysis. The total capital (debt + equity) figures that you provided in the downloaded template are different from the figures that are showing in your template on the video. Thus, I have a different valuation base on the downloaded template. For 2006, the figure in the downloaded template is 99,599, but the figure showed on the video is 40,831. What are the correct figures?

Thank you. Read More

Re: DCF analysis: net debt should be actual not est
You are correct. the footnote in A42 should say PV as of Jan 31, 2006 which is our "Fiscal 2005". Good catch! We messed that one up (big no-no!) because normally fiscal years are dec 31 year end. so normally we say Dec 31 of and then the first estimated year minus one. which is the same as... You are correct. the footnote in A42 should say PV as of Jan 31, 2006 which is our "Fiscal 2005".
Good catch! We messed that one up (big no-no!) because normally fiscal years are dec 31 year end. so normally we say Dec 31 of and then the first estimated year minus one. which is the same as Jan 1, of the first estimated year. but we like to use dec 31 not jan 1. and thus, we must have screwed up when changing it to match WMT's jan 31 year end.

this is a good example of what NOT to do on the job.

the WACSO on the IS is calculated using the average stock price for the year. However, when calculating diluted shares outstanding as of today (or latest available), we need to re-calc using most recent stock price. Read More

Liabilities and Interest Expense
In the "Financial Statement Analysis" video, he says that we should only include "Interest-Bearing Negotiated Securities" (IBNS's) as Liabilities in the A=L+OE equation because we are only interested in capital structure. My first question is why are IBNS's any different from ot... In the "Financial Statement Analysis" video, he says that we should only include "Interest-Bearing Negotiated Securities" (IBNS's) as Liabilities in the A=L+OE equation because we are only interested in capital structure.

My first question is why are IBNS's any different from other debt and debentures? If I issue a bond or note to raise $100k and use it to buy equipment, how is that different from going to a leasing company to finance the same $100 of equipment? (other than the first scenario produces a debenture that has claim on all the assets of the business in the event of default)

Do they not both equate to capital structure in the sense that they both financed PP&E for the company?

My second question is: assuming that we are only supposed to include IBNS's in the liabilities, does that mean the line item for interest expense on the Income Statement should only include interest relating to IBNS's?

If not, how do we resolve the difference between only having IBNS's on the BS and all interest on the income statement?

If so, please explain why? and where then would the other debt or debenture income and expense be posted on the income statement?

Thanks
Rick Read More

Re: Best way to set grey background for Mac
Unfortunately, Mac OS does not have a setting to change background to gray as Windows does. Thus, you can temporarily use a black fill to shade those cells. Remember to download our Mac shortcut keys to use Office 2011 for Mac. Unfortunately, Mac OS does not have a setting to change background to gray as Windows does. Thus, you can temporarily use a black fill to shade those cells. Remember to download our Mac shortcut keys to use Office 2011 for Mac.
http://www.wallst-training.com/resources.html and scroll down to Technical Resources section. Read More