Posts by: Guest 1
Company Profiles: Questions about slides
Hi Hamilton, I enjoyed your presentation about Company Profiles, but I had two questions: 1. On slide 7, total cap was calculated by substracting total debt instead of net debt, why? I thought you substract net debt? On the next slide, number 8, the TEV was calculated by sustracting net debt, ... Read More
Hi Hamilton, I enjoyed your presentation about Company Profiles, but I had two questions: 1. On slide 7, total cap was calculated by substracting total debt instead of net debt, why? I thought you substract net debt? On the next slide, number 8, the TEV was calculated by sustracting net debt, ... Read More
Purchase Price Allocation
Hi there, I have two questions related to Purchase Price Allocation that I believe you may be able to help me with: 1. Do you know why we write-off the entire Existing Deferred Tax Liability (DTL) balance from the Target’s balance sheet during Purchase Price Allocation? 2. Also, in some model... Read More
Hi there, I have two questions related to Purchase Price Allocation that I believe you may be able to help me with: 1. Do you know why we write-off the entire Existing Deferred Tax Liability (DTL) balance from the Target’s balance sheet during Purchase Price Allocation? 2. Also, in some model... Read More
Re: Liabilities and Interest Expense
First, thanks for the quick response. Let me repeat what I think you said to make sure I've got it straight. First, the only time we really need to worry about excluding debt and debentures that are not IBNS's from liabilities is in certain industries like airlines, real estate, etc., where th... Read More
First, thanks for the quick response. Let me repeat what I think you said to make sure I've got it straight. First, the only time we really need to worry about excluding debt and debentures that are not IBNS's from liabilities is in certain industries like airlines, real estate, etc., where th... Read More
Circular reference calculation not refrehsing automatically
In my financial model, there is a circular reference calculation for finance lease. I have selected "enable iteration" in the Excel settings, and the calculation runs well in normal circumstances. However, whenever there are some invalid cell references, say I delete an input row (which is... Read More
In my financial model, there is a circular reference calculation for finance lease. I have selected "enable iteration" in the Excel settings, and the calculation runs well in normal circumstances. However, whenever there are some invalid cell references, say I delete an input row (which is... Read More
Company Overview: Typo $3.34 not $3.33
Errata: Please note that at approximately 9:42 of the Financial Summary - Part 2 video the correct input should be $3.34 not $3.33 as the video mistakenly inputs.
Errata: Please note that at approximately 9:42 of the Financial Summary - Part 2 video the correct input should be $3.34 not $3.33 as the video mistakenly inputs.
WMT CapEx schedule - All new capex depreciated?
I was just curious why all new capex is being depreciated in future years. Shouldn't there be some allocation of new capex to land, which would not be depreciated? If so, would it be a safe assumption to allocate new capex on a pro rata basis based on existing gross pp&e and then just depreciate... Read More
I was just curious why all new capex is being depreciated in future years. Shouldn't there be some allocation of new capex to land, which would not be depreciated? If so, would it be a safe assumption to allocate new capex on a pro rata basis based on existing gross pp&e and then just depreciate... Read More
Inventory Writedown
Hello, I'm trying to integrate an inventory writedown to the fully integrated financial model that I've used from Hamilton. The model currently balances w/o any inventory writedown feature. I was wondering how I can add in an inventory writedown into the IS/BS/CF and still have the entire model b... Read More
Hello, I'm trying to integrate an inventory writedown to the fully integrated financial model that I've used from Hamilton. The model currently balances w/o any inventory writedown feature. I was wondering how I can add in an inventory writedown into the IS/BS/CF and still have the entire model b... Read More
Advanced Financial Modeling - Core Model: Minority Interest
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 interests of CME, s... Read More
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 interests of CME, s... Read More
How to model for existing revolver
Having worked through core model and enhancement classes, I am now trying to recreate this model for a new company. My question is that the new company already has an existing revolver with an outstanding balance. My initial instinct is to treat the outstanding balance on the revolver as a term loan... Read More
Having worked through core model and enhancement classes, I am now trying to recreate this model for a new company. My question is that the new company already has an existing revolver with an outstanding balance. My initial instinct is to treat the outstanding balance on the revolver as a term loan... Read More
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