Cash and debt in DCF
During calculating change in working capital while using FCFF method for DCF, why is cash and short term debt excluded?
Trending Content - Investment Banking Forum
| +160 | UBS Tech layoff | 52 | 1d |
| +157 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 26 | 4h |
| +146 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 31 | 21h |
| +92 | Leaked Interview Questions to Recruiting Services | 44 | 1m |
| +59 | Are target prospects getting dumber? | 27 | 20h |
| +58 | How do YOU manage networking requests? | 17 | 1d |
| +37 | Quitting After First 4 months | 12 | 2d |
| +34 | MBB Pay Raises | 26 | 2d |
| +23 | My new boss told me they have no idea what I was doing? | 2 | 7m |
| +19 | Rothschild UK - Mining & Healthcare 2026 | 5 | 3d |
Career Resources
Yo dude you need to study a lot and don't ask such a basic question here. WSO is a forum for experienced professionals, not for students like you lol. Peace out.
they are not a part of the operating working capital. DCF calculates the value of the company's operations and cash and short term debt is not a part of the core operations of the business
Ad quisquam et error vero aut accusamus voluptatum. Dolorem sint illum nihil.
Natus voluptatem iste impedit asperiores omnis quo. Vel repellendus quae voluptas explicabo architecto ipsam.
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...