Posts by: WST Expert 1
Re: Selling Receivables
You're welcome - that's what we are here for!
You're welcome - that's what we are here for!
Re: Selling Receivables
Only in cases of distressed companies.
Only in cases of distressed companies.
Re: Selling Receivables
n Excel, yes anything is possible. Some lazy ppl get lazy with best practices and have cash go negative. This means you're tapping into your overdraft account, which we prefer to call Revolver. The main difference in modeling implications is difference between your assumed interest income rate and ... Read More
n Excel, yes anything is possible. Some lazy ppl get lazy with best practices and have cash go negative. This means you're tapping into your overdraft account, which we prefer to call Revolver. The main difference in modeling implications is difference between your assumed interest income rate and ... Read More
Re: Selling Receivables
Sell A/R = raise debt.
Sell A/R = raise debt.
Re: Selling Receivables
I think we'd rather you increase debt instead of subtract cash. This will avoid negative cash balance, but the impact to Net Debt would be the same either way. Also, keep in mind, we would ONLY do this if only ONE company out of all your comp sets do this. We might even say we don't bother with this... Read More
I think we'd rather you increase debt instead of subtract cash. This will avoid negative cash balance, but the impact to Net Debt would be the same either way. Also, keep in mind, we would ONLY do this if only ONE company out of all your comp sets do this. We might even say we don't bother with this... Read More
Re: Selling Receivables
It depends on if you sell the receivables with or without recourse. Non-recourse (the bank takes the hit upon default by customer) factoring is considered to be SOLD to the buyer (the bank). In such a case, the "fee" is treated similar to regular Trade Discounts: Recall the four things that reduc... Read More
It depends on if you sell the receivables with or without recourse. Non-recourse (the bank takes the hit upon default by customer) factoring is considered to be SOLD to the buyer (the bank). In such a case, the "fee" is treated similar to regular Trade Discounts: Recall the four things that reduc... Read More
Re: Selling Receivables
Generally, A/R is not considered capital structure so no change to TEV. However, as you noted, the change arises due to the increase in Cash balance since you sold the A/R and got cash. This in turn lowers your Net Debt (cash is higher) and affects TEV. To get a true apples to apples comparison, ... Read More
Generally, A/R is not considered capital structure so no change to TEV. However, as you noted, the change arises due to the increase in Cash balance since you sold the A/R and got cash. This in turn lowers your Net Debt (cash is higher) and affects TEV. To get a true apples to apples comparison, ... Read More
Re: Forecasting Tax Rate
As always, it's always a judgement call. Hence the art of valuation and modeling, not the science. Else, write an algo.
Remember, the value add of finance professionals is not dumb number crunching but the ability to qualitatively analyze inputs and outputs
As always, it's always a judgement call. Hence the art of valuation and modeling, not the science. Else, write an algo.
Remember, the value add of finance professionals is not dumb number crunching but the ability to qualitatively analyze inputs and outputs
Re: Forecasting Tax Rate
You would use effective tax rate if you are projecting GAAP Income Statement. In an ideal world, you understand the reason why statutory (ie. marginal rate) is so different from the effective rate. This would be easily explained in the tax footnote. Then you have to decide if this reason will recur ... Read More
You would use effective tax rate if you are projecting GAAP Income Statement. In an ideal world, you understand the reason why statutory (ie. marginal rate) is so different from the effective rate. This would be easily explained in the tax footnote. Then you have to decide if this reason will recur ... Read More
Our recommendation is to create your own custom macros and assign shortcut keys that do not interfere with the WST Macro shortcuts or Excel's built-in shortcuts. We do not allow customization of our macros at this point. For more information on macro creation, go to our Adv Excel course which has a ... Our recommendation is to create your own custom macros and assign shortcut keys that do not interfere with the WST Macro shortcuts or Excel's built-in shortcuts. We do not allow customization of our macros at this point. For more information on macro creation, go to our Adv Excel course which has a short module on macros.
http://www.wallst-training.com/self-stu ... tech-excel Read More