Posts by: Guest 1
How does one correctly calculate Days Payable Outstanding?
Full Question: I took your advanced financial modeling class yesterday and have a question for you regarding the DPO (Days Payable Outstanding) formula. The formula we used was AP * (365/total expenses). I thought DPO used COGS to calculate. How come we’re using total expenses instead? Is it some... Read More
Full Question: I took your advanced financial modeling class yesterday and have a question for you regarding the DPO (Days Payable Outstanding) formula. The formula we used was AP * (365/total expenses). I thought DPO used COGS to calculate. How come we’re using total expenses instead? Is it some... Read More
WACC : Historical Beta Values
Could someone please enlighten me as to what databases exist for historical beta values (say past 5 yrs.)for companies?Which databases are considered most reliable? Also we use peers to find an average unlevered beta value and then lever it to the capital structure of the target company. Is there a... Read More
Could someone please enlighten me as to what databases exist for historical beta values (say past 5 yrs.)for companies?Which databases are considered most reliable? Also we use peers to find an average unlevered beta value and then lever it to the capital structure of the target company. Is there a... Read More
How do I simplify sensitivity analysis in a financial model?
Full Question: we are constantly setting up models and running different case scenarios based on variable inputs we create in our models. Often times we need to summarize these cases onto one table and because the models are complex and we change more than one variable at a time it sometimes means ... Read More
Full Question: we are constantly setting up models and running different case scenarios based on variable inputs we create in our models. Often times we need to summarize these cases onto one table and because the models are complex and we change more than one variable at a time it sometimes means ... Read More
RE: Growth Vs %rev
Ok. In your explanation, you said: "So if you determine it is % growth (standalone, like "Other Income") vs. tied to revenue (as revenue changes, that item is also affected) then you will use that appropriate driver." My question is how do we determine that in the first place? I also under... Read More
Ok. In your explanation, you said: "So if you determine it is % growth (standalone, like "Other Income") vs. tied to revenue (as revenue changes, that item is also affected) then you will use that appropriate driver." My question is how do we determine that in the first place? I also under... Read More
Re: Negative Goodwill
I am modeling a private company LBO asset purchase. We are paying $5 for a company with fmv appraised value of $11. Do I understand correctly that I would adj the PP&E up by the $11 and add $6 to the equity account (i.e., 11-5=6) instead of adding negative GW of $(6)? Am I further correct that I... Read More
I am modeling a private company LBO asset purchase. We are paying $5 for a company with fmv appraised value of $11. Do I understand correctly that I would adj the PP&E up by the $11 and add $6 to the equity account (i.e., 11-5=6) instead of adding negative GW of $(6)? Am I further correct that I... Read More
Re: Macro partially disabled
I tested it for a while, as far as what I can see here, at least these 3 features are not working properly, and there might be more I guess.. Ctrl+Shift+D becomes zoom out instead of $ sign Ctrl+Shift+E center no merge not working Ctrl+Alt+G becomes eliminating/showing grids instead of green filli... Read More
I tested it for a while, as far as what I can see here, at least these 3 features are not working properly, and there might be more I guess.. Ctrl+Shift+D becomes zoom out instead of $ sign Ctrl+Shift+E center no merge not working Ctrl+Alt+G becomes eliminating/showing grids instead of green filli... Read More
What if discretionary debt sweep is positive?
Full Question: In calculating Discretionary Sweep for WMT, the formula had: -Min(Beginning Balance Revolver, Cash Flow before Discretionary Debt Repayment). In this case, Cash Flow before Discretionary Debt Repayment was negative and hence Discretionary Sweep became a positive number. I just com... Read More
Full Question: In calculating Discretionary Sweep for WMT, the formula had: -Min(Beginning Balance Revolver, Cash Flow before Discretionary Debt Repayment). In this case, Cash Flow before Discretionary Debt Repayment was negative and hence Discretionary Sweep became a positive number. I just com... Read More
Re: Negative Goodwill
To be clear on my earlier post, this is a bargain-priced deal. As such, there no "future losses" to be accounted for with the negative goodwill. Thanks.
To be clear on my earlier post, this is a bargain-priced deal. As such, there no "future losses" to be accounted for with the negative goodwill. Thanks.
How to project minority interest?
Full Question: I'm working on a company called Central European Media Enterprises and on the balance sheet there is minority interest. I know in the video we did not project that account because we did not have enough information. However, I do have quite a bit of information on the ownership inter... Read More
Full Question: I'm working on a company called Central European Media Enterprises and on the balance sheet there is minority interest. I know in the video we did not project that account because we did not have enough information. However, I do have quite a bit of information on the ownership inter... Read More
Thank you very much! Yes now it's working perfectly after I uninstalled the Bloomberg add-in.
But is there a way to modify the macro in order to make both of them work?