Deferred taxes - actual cash taxes
(Senior Baboon, 198
Points)
on 7/1/12 at 9:31am
I'm forecasting cash flow for a company that has a DTL and NOLs. They actually include the nol in their DTL breakdown (e.g. they report a DTL of 10mm, but 15mm of that is timing differences in book-tax basis and then they add their 5mm NOL). As far as figuring out what cash will actually be paid in taxes in future quarters, how would you go about doing that?






I always set up my dcf models
I always set up my dcf models for companies with NOLs with another tab for the NOL. The NOL tab should calculate based on the taxable income, how much if the NOL will be used, and how much is left for future periods. You can then set up the DCF to pull from this tab.
See my other WSO blog posts
valuationGURU: I always set
I always set up my dcf models for companies with NOLs with another tab for the NOL. The NOL tab should calculate based on the taxable income, how much if the NOL will be used, and how much is left for future periods. You can then set up the DCF to pull from this tab.
Ok, cool -- dpes the DTL arising from temporary differences not affect cash taxes?
I am not sure. I am not a CPA
I am not sure. I am not a CPA but I imagine this method is accurate enough given all the other assumptions in a dcf model
See my other WSO blog posts