A little question on Damodaran's sales to capital ratio

Dear all,

I have a question regarding Damodaran's sales to capital ratio. I found it very useful as it is very difficult to estimate capex, d&a and working capital.

But as far as i'm concerned, the sales to capital ratio does NOT include working capital (only net capex). Am I correct?

Thanks for you time,

Henrique

412 WSO Academy Equity Research Session Reviews: 4.84/5

Springfield College

Class of '29 Sep 2026 Cohort

5.00/5

Equity Research Mock Coffee Chat

“Michael gave me very practical, specific advice for breaking into equity research as a freshman. I came in with mixed results from past alumni and industry chats, and he showed me how to make them more useful. He advised tailoring the length and questions of each chat to the contact: start with a brief intro, then pivot to targeted questions tied to their role. For shorter calls, he suggested pinpoint questions that draw out actionable advice. When a contact works in a different area, he told me to phrase my interest broadly and then ask for insight into their team or function, so my goals line up with their work. He also changed how I prepare. He told me to read the analyst’s published reports or their firm’s research before the call and to bring one or two stock or sector ideas and ask for their take, which shows I’ve done my homework. He suggested using school resources like terminals and the finance club to gather sources and data. On building my resume, he recommended continuing to publish on a Substack or website, pursuing WSO or part-time research projects, and applying to the WSO equity research internship or similar programs, then adding the published pieces to my resume and portfolio. He also told me to join my school finance club and get Bloomberg access. Finally, he coached me to ask for introductions during the call when it comes up, to repeat the request in the thank-you email, and to explicitly ask who they’d recommend and offer to follow up. I left with clear action items I can start on right away.”

Class of '25 Nov 2026 Cohort

5.00/5

Equity Research Career Roadmap (optional)

“Chris was very easy to talk to and made the session feel relaxed and genuinely useful. He gave me clear, actionable tasks that I can go away and work on straight away to expand my network. I hope to reconvene with him at a later date to discuss the progress I have made and get his feedback on the work I have been doing.”

See All 11,662 WSO Academy Reviews

1 Comments

WSO Monkey Bot

O

5y

Quibusdam quam ullam ea perferendis qui sed. Quae consequatur sequi consequuntur odio ratione deserunt suscipit. Tenetur expedita dignissimos sequi voluptatum assumenda nesciunt. Iure ratione voluptas possimus ullam sed et. Atque minima vel enim velit.

Consequatur reiciendis animi sit laboriosam autem. Magnam consequatur amet facilis libero. Eum impedit cum voluptatum. At molestias velit sequi omnis adipisci voluptatem. Quam dolor maiores eaque accusantium fugiat sit. Excepturi voluptates aut quidem qui non. Vel provident dolor ratione aut.

+14	Is Equity Research Dying - Where Are the Future Opportunites?	4	5d
+10	Associates who stuck around for > 5 years working for the same analyst. Why?	4	1w
+9	Detailed Revenue and Cost Builds	3	2w
+7	Analyst with no coverage or ranking	5	1w
+6	Preparation for grad scheme - buyside ER	1	3d
+1	IB SA -> ER FT	4	2w
0	Equity Research Rankings	1	2w

1	redever	99.2
2	BankonBanking	99.0
3	Secyh62	99.0
4	kanon	99.0
5	dosk17	98.9
6	DrApeman	98.9
7	GameTheory	98.9
8	Betsy Massar	98.9
9	CompBanker	98.9
10	numi	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

A little question on Damodaran's sales to capital ratio

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

A little question on Damodaran's sales to capital ratio

See All Comments - 100% Free

Trending Content - Equity Research Forum