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Working capital vs. net working capital vs. trade working capital
Can someone please explain the difference between working capital, net working capital and trade working capital? I am currently very confused. Many thanks in advance!
Rosenbaum
Hi, Would you recommend buying the Rosenbaum as a book for 100€ or is a pdf version from 2009 also sufficient? Thank you in advance! :)
Forensic Accounting useful?
Hey, I just finished the book „Confidence Game“ on Bill Ackmans battle with MBIA. The book says that they made use of forensic accounting reports on multiple occasions, which made me wonder, if learning more about forensic accounting is useful to being a investor, or if it is only useful if you...
Net Debt
Is it true that lease liabilities are added to net debt under IFRS 16? I think so. Just wanted to be sure here.
Effect von goodwill impairment on EV/EBITDA Multiple
How does an extraordinary amortization (e.g. goodwill impairment) affect the EV/EBIT multiple? In principle, our EBIT would decrease, which is why the multiple should increase. However, EV should also decrease at the same time. Which effect would generally be stronger here?
Trading Multiples and Comparable Company analysis
Is there a difference between Trading Multiples and Comparable Company analysis? For example, when valuing a private company, to my knowledge, not only multiples of listed companies (trading multiples) are used for comparison, but also multiples of other similar private companies. Is this correct...
Do dividends affect the EqV and EV?
Do dividends affect the EqV and EV? My assumption: EqV changes but EV remains the same. Do you agree or am I getting this wrong?
CF in LBO vs CF in DCF
Can someone please explain to me what is the difference between unlevered free CF in a DCF and unlevered free cash flow in a LBO? I would be very appreciated. Thank you!
Why is minority interest not included in our EqV?
I understand that we have to do it so that our multiples are consistent. But I don't understand why minority interest is not already included in the EqV. According to IFRS, minority interest is booked in equity on the balance sheet. Why do we have to add it again in the bridge? I would appreciate an...
Do expenses (e.g. pension expenses) have an effect on the enterprise value?
Going through the 3 statements, I assume that expenses (e.g. pension expenses) have no effect on the PA. Example: Expense of 100 (tax 30%) -> reduce net income by 70 -> CF is also reduced by 70. That means the equity decreases by 70 and the cash balance on the assets side decreases by 70. In...
Does debt issuance affect EqV?
Does EqV change when you take on debt? My assumption is no, since taking on debt has no effect on shareholders' equity. Is this correct?
finance the acquisition 100% with debt
Why can't we finance the acquisition 100% with debt? Would that be possible in practice? Theoretically, the debt would then be equity?
Free cash flow to firm
Why is Tax not deducted in FCFF? When we start the calculation at EBITDA we subtract CAPEX & Change in NWC. Why don't we also subtract the tax we have to pay? To get to the FCFE we then only subtract tax? Why is that the case?
Expenses impact on Enterprise Value
Do expenses (e.g. pension expenses) have an effect on the enterprise value? If not, why is that the case?
Pension Liabilites
Why do defined contribution plans have no effect on enterprise value? The pension expense would reduce net income and thus also the resulting free cash flows for the company. Why then, according to several articles, do they have no effect on EV and the defined benefit plans have an impact?
How can an Accounting major break into AM?
Hey everyone. I'm an accounting major at a non-target with a 3.5 GPA in a major Canadian city. I've always been interested in finance and have been reading this forum for years but I've never genuinely committed to trying to break in. My original plans were to start at a Big 4, maybe try M&A tax or...
Cash flow statement - only one year wrong?
Help highly appreciated! I‘m currently in a recruiting process and have a week long business case to model. Only had public balance sheets and P&Ls available, entered most data (left out some minor accounts and took totals, for example for intangibles etc) and calculated cash flow statements. For...
D&A for EBITDA Reconciliation
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How to properly model IFRS / GAAP capital leases
Im having difficulty trying to model out finance leases properly. Can anyone post the steps they normally go through for forecasting finance leases? Thanks!
Accounting and Auditing
Accounting and Auditing services in UAE for your business services. Suggest an accounting firm in Dubai
How to improve accounting skills?
Dear WSO Members, How would you improve your accounting skills? I know the basics that a PE associate should know but I don’t have background in Finance so learned everything on the job or on my own and only the key concepts. I don’t have skills that would allow me to challenge CFOs or financial...
Breaking into Finance with Accounting Degree
My stats: -I have an accounting degree from non-target. -I have a computer science minor -I have a 3.9 GPA -I am eligible to start the CPA program -I have a model that makes annually 16% and 12% DD since 1988 (stats can be adjusted with leverage) same volatility as S&P 500. I think the best part is...
Dividends and Minority Interest
Hi all, Sorry if this is a basic question as I'm teaching myself how to build out a 3 statement model. Say company A acquires 90% of company B, and this is reflected in A's consolidated financial statements. 1. If A pays dividends to its shareholders, the minority interest line in equity is not...
Payroll Outsourcing Service in Singapore
If you're looking for a reputable and affordable payroll outsourcing service company in Singapore, look no further than AcraaPlus! AcraaPlus is one of the best payroll outsourcing service companies in Singapore. We offer a wide range of services, including payroll processing, tax filing, and...
Why does customers paying upfront result in negative NWC
Question 19 from M&I400 Accounting Section: What does negative Working Capital mean? Is that a bad sign? The answer says "Retail and restaurant companies like Amazon, Wal-Mart, and McDonald's often have negative Working Capital because customers pay upfront - so they can use the cash generated to...
When would you not use DCF in a Valuation
From M&I Valuation Question 3: "When would you not use a DCF in a valuation?" The answer essentially starts with the idea that you shouldn't use DCF for companies with unstable cash flows. Intuitively, this seems to make sense as it might not make cash flow a good metric of valuation for a company...
What do we use to value commercial banks
M&I EV vs Equity Value section question 10 says that "Enterprise value is not even used for commercial banks in the first place." So out of curiosity, what is used to value commercial banks?
Fully Diluted Shares: Treasury Stock Method
From M&I Equity vs Enterprise Value Question 6: "Let's say a company has 100 shares outstanding, at a share price of $10 each. It also has 10 options outstanding at an exercise price of $5 each - what is its fully diluted equity value? The answer basically says that we take $1000 from the current...
Is Cash a non-operating asset
M&I400: Question 8 on EV vs Equity says that cash is subtracted from EV because it's considered a "non-operating asset." This seems highly counterintuitive. Can someone please explain?
Question about minority interest in EV
Why is noncontrolling interest part of EV continued: To start, why do we consider the portion of EV called "noncontrolling interest" that at all? Investopedia describes noncontrolling interest as ownership in a company of less than 50%, but according to M&I400, noncontrolling interest in EV is more...
Resources for Startup Accounting/Modeling
Anyone know of any helpful resources for startup accounting/ modeling? Recently find myself dealing with a company that is just starting to get revenues with a highly volatile cash burn and trying to leverage some other resources out there to see if I am missing anything in the way I am thinking...
Career Advice: Breaking into GS with an Accounting Background
For most of college I thought I wanted to do accounting as a career. Only had a change of heart recently and got really into finance, now I think my dream job would be working at a hedge fund or a similar business managing investments. I go to school at a non-target, but I learned that some...
How much accounting should I know for a career in Investment Banking?
I am a finance student aiming for a career in IB. I have already taken courses such as Intro to financial accounting and managerial accounting. I will also take courses about Securities, Risk Management and Financial Statement Analysis. Considering this, are those courses enough foundation or should...
What is accouting?
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. 1.Accounts Payable. Accounts payable refers to the money a...
Help accountant
Hey. I've worked for an accounting firm for over a year. I left the job because I had some family problems I had to deal with. Now no agency would hire me. I have a Bachelor's Degree and all that stuff, but it seems that I'm seen as nothing. No callbacks. What should I do? Am I doing something...
Global Valuations Accounting & Tax
Hey Everyone. Currently a first year in an IT Consulting/Audit role at a Big 4 accounting firm and just finished up the CPA exam. After being in this group for about a year I decided IT is not for me. After researching different careers, I stumbled upon the attached job description. I was wondering...
Benefits of outsourcing accounting & finance operations
Small to large businesses take advantage of offshore specialist accounting services by enlisting the expert help of accounting BPO companies such as OBP. Businesses that utilize outsourced accounting services reap benefits such as: Cost reductions and increased profitability Increased productivity...
company budget model vs. forecast model?
hi everyone, can someone help explain to me the difference between a company budget model vs. forecast model? the difference is quite confusing to me, aren't these the same things? when people to refer to "2021 budget" isn't this the same thing as "2021 forecast"? appreciate any guidance in advance.
what does it mean to roll a QoE forward?
very noob question but what does it mean to roll a QoE forward? does it just mean refreshing the QoE with newly released financials from the company? so if a provider produced a report for CY2020, updating that report with the same procedures but including Q1 2021 numbers when they are released?...
LeVeon
LeVeon Business Coaching, Business Accounting & Taxation Advisors in Australia. LeVeon specialise in coaching and mentoring business owners in the trades and construction industry so that they can streamline their business, effectively growing and then scaling, so as to maximise profitability over...
Accounting > > ER
Hey, looking for (1) advice as to how can I position my accounting job so it could be somehow useful for ER profile when the time comes. I am learning SAP FICO module and will work with the same within the next 3 months (placement started). Also, am targeting tech companies and e-commerce so as to...
How to get out of corporate finance
Hi everyone, I have been with an F10 company for about a year now as an "analyst". The problem lies in the fact that the accounting component of this role was vastly understated during interviewing. I am trying to get out of CF and go into consulting or even another CF role that has more...
How is accrual and accounting different?
How can one differentiate between accrual and accounts payable? Please explain this, I have been confused
How Did That Event Affect The 3 Reporting Forms?
Please help. The Company had on its balance sheet equipment worth 100 dollars. In the current period, it sold this equipment for $50. How did it affect the 3 reporting forms? Thanks!
How did these events affect the 3 reporting forms?
Please help. 1) Company A owns 30% of Company B. Company B received a net profit of USD 100 for the reporting period. How did this affect the 3 reporting forms of Company A? 2) The same condition but with the addition: Company B paid 30% of net profit as dividends. What effect did this have on the 3...
Current Sophomore trying to understand more
Hi everyone, I am currently a sophomore at a non-target who had is looking for more clarification on accounting principles before I start my first-round interviews. Before I get called an idiot, I want to explain my past experience, I had a finance-related internship this summer, part of my school's...
Fund Accounting vs FP&A
Hi, I am currently looking to exit Big 4 Audit and have the following two opportunities: Finance Manager at Top VC firm (in-charge for reviewing all accounting work prepared by out-sourced accountants. basically operations and reviewing work here along with work with auditor requests). Senior FP&A...
BDO Canada LLP
BDO Canada LLP is a leading middle market accounting firm that offers assurance and advisory services.
From Advertising to Real Estate
Trying to get an idea of what my chances are and what next steps I should take. Background: I have a social science undergrad and an MBA from a bottom of the barrel University. I was fortunate enough to do one internship at boutique a M&A firm, always with the intention to get a job in real estate....
Healthcare IB - Accounting/Interview Questions
I am looking for Healthcare specific accounting questions or interview questions to consider for a healthcare IB role. Basically, other than the general valuation methodologies and other general IB questions. What should I be prepared for a technical interview? For example, for software companies is...
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