Posts by: Guest 1
Re: Selling Receivables
does this ever happen in the real world? I don't recall seeing any companies with a negative cash balance on their B/S
does this ever happen in the real world? I don't recall seeing any companies with a negative cash balance on their B/S
Re: Selling Receivables
Ok I got it. Is it theoretically and practically possible to have a negative cash balance on a Company's B/S?
Ok I got it. Is it theoretically and practically possible to have a negative cash balance on a Company's B/S?
Re: Selling Receivables
Ok, I understand the overall affect on net debt, however, I'm having a hard time grasping the fact that we increase debt by reversing A/R? I'm not sure I understand increasing the debt part intuitively except for the sole fact of not having a negative cash balance.
Ok, I understand the overall affect on net debt, however, I'm having a hard time grasping the fact that we increase debt by reversing A/R? I'm not sure I understand increasing the debt part intuitively except for the sole fact of not having a negative cash balance.
Re: Selling Receivables
Ah understood, in this case (back to the original problem). The only adjustment that needs to be made on the EV/EBITDA is the Net debt? In addition, can the company have a negative cash balance on their B/S? is this possible?
Ah understood, in this case (back to the original problem). The only adjustment that needs to be made on the EV/EBITDA is the Net debt? In addition, can the company have a negative cash balance on their B/S? is this possible?
Re: Selling Receivables
This question was posed to me in an interview. I now understand the Cash adjustment, however I still don't have a very clear understanding of the interest expense adjustments. I was told something along the line of, when you sell receivables for financing purposes, they are usually purchased at a di... Read More
This question was posed to me in an interview. I now understand the Cash adjustment, however I still don't have a very clear understanding of the interest expense adjustments. I was told something along the line of, when you sell receivables for financing purposes, they are usually purchased at a di... Read More
Selling Receivables
I have a question regarding adjustments to EV/EBITDA when a Company sells receivables. The following is the scenario, There are three comps that you're evaulating EV/EBITDA. Two of the companies have 20m in cash on their B/S and does not sell their receivables for financing reasons. The third com... Read More
I have a question regarding adjustments to EV/EBITDA when a Company sells receivables. The following is the scenario, There are three comps that you're evaulating EV/EBITDA. Two of the companies have 20m in cash on their B/S and does not sell their receivables for financing reasons. The third com... Read More
Re: Forecasting Tax Rate
Ah understood, so it's not a straightforward answer. It really depends on whether the adjustments are a one time thing or whether it would continue on in the future.
Ah understood, so it's not a straightforward answer. It really depends on whether the adjustments are a one time thing or whether it would continue on in the future.
Forecasting Tax Rate
How would you forecast the tax rate for a company? For example, if the statutory tax rate was 40% for the last three years, and the effective tax rate for the last three years were 20, 21,22% What tax rate would you use in your forecast and why? Can someone please explain this to me, perhaps usin... Read More
How would you forecast the tax rate for a company? For example, if the statutory tax rate was 40% for the last three years, and the effective tax rate for the last three years were 20, 21,22% What tax rate would you use in your forecast and why? Can someone please explain this to me, perhaps usin... Read More
Re: Ref Range Issues
Since Pack 4 isn't in the budget (I would take it if it were), I did find some resources lying around that said I should normalize comp numbers and, after that, ditch entire valuation methods that simply do not make sense (e.g., too few data points -- like one transaction -- or methods that say a $2... Read More
Since Pack 4 isn't in the budget (I would take it if it were), I did find some resources lying around that said I should normalize comp numbers and, after that, ditch entire valuation methods that simply do not make sense (e.g., too few data points -- like one transaction -- or methods that say a $2... Read More
Thank you, this has been very educational and helpful!