Posts by: Guest 1
Monthly Model Balance Sheet Drivers
In our LBO modeling class we calculated inventory and accounts receivable using days inventory outstanding and days sales outstanding. However, this model was produced on an annual basis. When developing a model on a monthly basis, would you still use this formula or would you setup separate inven... Read More
In our LBO modeling class we calculated inventory and accounts receivable using days inventory outstanding and days sales outstanding. However, this model was produced on an annual basis. When developing a model on a monthly basis, would you still use this formula or would you setup separate inven... Read More
New Conditional Formatting Question
I want to conditionally format a range of cells in a manner that if the value is >5% than the cell to the left, it is green, and if it is <5% then the cell to the left, it is red. Can you help me figure it out? Also, why is the WST Macro Ctrl+Shift+W a conditional format instead of just chang... Read More
I want to conditionally format a range of cells in a manner that if the value is >5% than the cell to the left, it is green, and if it is <5% then the cell to the left, it is red. Can you help me figure it out? Also, why is the WST Macro Ctrl+Shift+W a conditional format instead of just chang... Read More
Short Term Investment treatment
I hv short term investment of 100 amount so that represented a -100 in CFI. so if i get interset income from that, that will give me + 10 in CFI. but let's say if i want to draw down 25 from the CFI to to finance the company. so i reduce CFI by -25, but where does my 25 goes in the rest o... Read More
I hv short term investment of 100 amount so that represented a -100 in CFI. so if i get interset income from that, that will give me + 10 in CFI. but let's say if i want to draw down 25 from the CFI to to finance the company. so i reduce CFI by -25, but where does my 25 goes in the rest o... Read More
FCFF calculation & WACC
Hi Guys, I have a few questions that i would like your opinion on. 1. On the DCF Analysis we calculate NOPAT after we subtract from EBIT the Cash Taxes (i.e NOPAT=EBITx(1-Tax rate)). Now let's assume that the company has retained losses carried forwmard which will not turn positive for the 5... Read More
Hi Guys, I have a few questions that i would like your opinion on. 1. On the DCF Analysis we calculate NOPAT after we subtract from EBIT the Cash Taxes (i.e NOPAT=EBITx(1-Tax rate)). Now let's assume that the company has retained losses carried forwmard which will not turn positive for the 5... Read More
R&D Expense and Capital
Hi WST, I am analyzing an ODM TECHNOLOGY company and trying to build an integrated projection. From reviewing its financial reports, it has, say, $8m of R&D expenses on the income statement and $12m of investment cash outflow of Product Development; it also has an intangible asset account for P... Read More
Hi WST, I am analyzing an ODM TECHNOLOGY company and trying to build an integrated projection. From reviewing its financial reports, it has, say, $8m of R&D expenses on the income statement and $12m of investment cash outflow of Product Development; it also has an intangible asset account for P... Read More
How do you define Interest Coverage Ratio?
How do you define Interest Coverage Ratio?
Do you use EBIT or EBITDA or something else in the numerator?
Please explain briefly you reason for preferring one over the other.
How do you define Interest Coverage Ratio?
Do you use EBIT or EBITDA or something else in the numerator?
Please explain briefly you reason for preferring one over the other.
Re: Identifiable Intangible Assets
(1) If i understand you correctly, you're saying that the differentiation between infinite/finite-lived intangibles as strictly a Tax thing, and that all intangibles except Goodwill are amortized under GAAP. (2) I understand that I can simply turn off the switch for tax deductibility purposes. Howe... Read More
(1) If i understand you correctly, you're saying that the differentiation between infinite/finite-lived intangibles as strictly a Tax thing, and that all intangibles except Goodwill are amortized under GAAP. (2) I understand that I can simply turn off the switch for tax deductibility purposes. Howe... Read More
Re: Conditional Formatting
Sorry, my question was not very clear. Maybe an example would help: If I have the following numbers in a row: 99 100 105 105 100 100 99 The I would want the formatting to be as follows: 99 100 [color=#00BF00:33jx3nvr]105[/color:33jx3nvr] 105 [color=#FF0000:33jx3nvr]100[/color:33jx3nvr]... Read More
Sorry, my question was not very clear. Maybe an example would help: If I have the following numbers in a row: 99 100 105 105 100 100 99 The I would want the formatting to be as follows: 99 100 [color=#00BF00:33jx3nvr]105[/color:33jx3nvr] 105 [color=#FF0000:33jx3nvr]100[/color:33jx3nvr]... Read More
Debt and Capex
According to you model CAPEX requirements are calculated in the Cash before Debt figure. LT Debt and the respective CPLTD stays unchanged and the mdoe, balances with the Revolver. This implies that all CAPEX requirements for the year that are not financed through CFO and postitive CFI or CFF (excl d... Read More
According to you model CAPEX requirements are calculated in the Cash before Debt figure. LT Debt and the respective CPLTD stays unchanged and the mdoe, balances with the Revolver. This implies that all CAPEX requirements for the year that are not financed through CFO and postitive CFI or CFF (excl d... Read More
My video for the M&A package has expired so I'm just going off of what I have in my notes and in the Pepsi/Molson M&A excel model. It seems the differentiating factor between Tax Deductible and Non-Tax Deductible Intangibles is whether the asset has a finite or infinite life. Separately, I w... My video for the M&A package has expired so I'm just going off of what I have in my notes and in the Pepsi/Molson M&A excel model. It seems the differentiating factor between Tax Deductible and Non-Tax Deductible Intangibles is whether the asset has a finite or infinite life. Separately, I was under the impression that for book accounting, the acquirer does not amortize the infinite life intangibles, but instead test them for impairment (this includes goodwill, and also perpetual rights and licenses). However, the model contradicts my understanding and I would like to confirm which way is correct. Which FASB rule supports this?
Secondly, I was taught that for tax accounting, under a stock deal, the acquirer does not amortize any type of intangible unless there is a Section 338 election. However, in the model, you amortize intangibles with finite lives. Which is correct? Which IRS code supports this?
Thanks Read More