Re: Video Glitch
Hi Mark, we're not able to reproduce that video error on our end. Could you please email us at support@wallst.training with the operating system and browser version you're using? Thanks!

Re: Costco Interest Expense
As a general statement, subtracting interest income from interest expense is typically referred to as "net interest expense." That said, for the purposes of these coverage ratios, it's better to use gross interest expense (i.e., disregard interest income). In practice, this often requires diggin... As a general statement, subtracting interest income from interest expense is typically referred to as "net interest expense."

That said, for the purposes of these coverage ratios, it's better to use gross interest expense (i.e., disregard interest income). In practice, this often requires digging through the footnotes, in case the specific details are not enumerated on the financial statements themselves.

In this particular exercise, WMT's number for interest expense was derived as interest expense ("Debt"), plus capital leases. For TGT, we could only use "net interest expense" (even though it isn't ideal), because that was the only number provided in the course materials. Finally, for COST, we used the interest expense line item (34).

In conclusion, TGT is actually the case that stands out, simply because we didn't have better data to work with. Read More

Re: Control R vs Paste Special
Ctrl+R will indeed copy both the formula/value and formatting. In our courses, the templates are all pre-formatted, so Ctrl+R is vastly superior because the formatting is ready to be propagated to future columns. In general, Ctrl+R is simply faster and thus more efficient (fewer steps/keystrokes), a... Ctrl+R will indeed copy both the formula/value and formatting. In our courses, the templates are all pre-formatted, so Ctrl+R is vastly superior because the formatting is ready to be propagated to future columns. In general, Ctrl+R is simply faster and thus more efficient (fewer steps/keystrokes), as long as the formatting ought to be retained. Read More

Re: Using average receivables
In our training, we do not advise using average receivables for balance sheet drivers. Of course, if there's a specific part of one of the videos that you'd like us to clarify, please let us know and we'll be glad to revisit them together.

That said, average should be used for comps.

Re: Using average receivables
In all our training and live deal models, we never use average receivables for balance sheet WC drivers for this very reason. For non-annual models (such as quarterly or monthly), cyclical fluctuations and the use of averages will yield very inaccurate numbers. Separately, if all numbers (such a... In all our training and live deal models, we never use average receivables for balance sheet WC drivers for this very reason. For non-annual models (such as quarterly or monthly), cyclical fluctuations and the use of averages will yield very inaccurate numbers.

Separately, if all numbers (such as revenue and the driver itself) are constant, please do check the formulas. We can only think of the initial driver itself as calculated using non-constant revenue figures in the actuals. Read More