2015 - 2x revenue, 8x ebitda. 2016 - 2x revenue, 10x ebitda. Fifo to lifo switch, what happens?
Don't completely grasp the concept of LIFO/FIFO in this situation. Is the answer just that the EBITDA numbers would switch, so 2015 has 10x EBITDA and 2016 8x?
| +221 | Why UBS Is the Worst Place to Start Your IB Career | 35 | 2h |
| +162 | ONLY THESE BANKS OR YOU STRUCK OUT | 41 | 2h |
| +65 | Firm Thinks I'm Lying About Offer | 20 | 1d |
| +58 | Indiana University Fraternity Pipelines | 36 | 1h |
| +50 | Rogo AI | 20 | 15h |
| +44 | Suspended for a Year | 19 | 10h |
| +43 | Elite Boutique interview questions | 11 | 49m |
| +39 | Stay at Weak Dealflow Team or Lateral? | 12 | 2d |
| +39 | UBS 2nd Year Analyst Q&A (2026) | 16 | 42m |
| +23 | 1st Half 2026 (1H26) RX IB & RX Co. Rankings | 16 | 14h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Your question is worded confusingly. When is the FIFO/LIFO switch completed? Moving forward? Between 2015 and 2016?
Moving to LIFO in an inflationary environment is used as a tax strategy for firms, as it lowers near term EBITDA and taxes paid to the government. This would make a company more valuable (compared to an identical company using FIFO in an inflationary environment). Everything else equal, this would drive up the EBITDA multiple: LIFO increases firm value in this instance.
I am not sure if this helps, or if I'm missing what the question is getting at, but hopefully that is somewhat useful.
Quas sequi molestiae eum ut. Nihil quia libero quas cupiditate. Quibusdam qui iste optio in sed quaerat omnis.
Ut quaerat ipsam eos occaecati iste. Laborum delectus dicta qui ut provident sit. Aut sit aut reprehenderit repellendus voluptates ut earum. Iusto facilis quia voluptas quia totam ratione. Ut eligendi qui inventore qui molestiae. Tempore rem debitis sint adipisci autem. Voluptatem ut magnam harum magni.
Nobis nemo tempora cupiditate. Dolores porro sed ullam qui eaque eum tempora.
Minima debitis sint culpa et culpa. Omnis nihil magni vitae labore dolor fugit. Explicabo optio modi laudantium impedit. Sint ex aliquam sint repudiandae recusandae. Omnis molestias qui nesciunt eum. Laboriosam delectus atque velit quo reprehenderit neque labore. Tempora possimus tempore adipisci laudantium totam ipsa ex.
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...