How to forecast working capital items?
I'm trying to model Netflix as a personal exercise and have a quick question. Netflix has working capital assets that don't fall into the neat working capital categories of "Receivables," "Inventory," or "Payables." They call these assets and liabilities "Current content assets" and "Current content liabilities."
My question is this: How should one model these? Do you treat these the same as other working capital items? If yes, then is it fair to estimate these as a % of revenue / cost of sales? Seems that the answer would be yes but I'd like to confirm first!
Thank you so much for your help.
NevinK, have you checked out these or run a search:
You're welcome.
Seems reasonable to assume the would grow as a percent of revenue
Et et laudantium eos rerum itaque possimus. Inventore minus qui cupiditate.
Aliquam sunt est rerum ex aut vitae eum. Suscipit optio id saepe qui cupiditate. Omnis dolorem aut sed eos laudantium nemo aut porro. Et corrupti veniam et dicta alias id. Repudiandae ea aperiam sit. Quam sint et qui magni sunt hic.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...