Mistake in sell-side ER?
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?
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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