I was going through a sell-side ER report and saw that they didnt add back 'amortization of deferred loan issuance costs' in the cash flow statement.
The amortization is definitely a non-cash flow item and would have only occurred at time of loan issuance etc (and was Capitalized). Shouldnt the number be added back to get Operating cash flow from NI?
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Just shoot the analyst with the same question, no matter who you are. Pretty sure he/she would reply back to you with either explaining what/how they did or admitting his/her mistake.
There are often mistakes in sell-side reports.
x2, honestly relax ar169 we make mistakes all the time given the amount of work we have to pump out. This coming from an associate on a highly ranked team.
But to answer question OP, probably should be added back - unless there is a specific reason they chose not to, which you won't really know unless you see the actual model (not just the output) or speak to the analyst/associate.
Is it the same every year, or just one year? More likely it was done for a reason if every year.
Same
The question you should ask: does it change the story/valuation in any way?
Soppy balance sheet / cash flow stuff is pretty common --- depending on the industry
Is the company super levered / is there a solvency issue?
Typically guys are just slapping a multiple on EBITDA or EPS
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