Most common adjustments when scrubbing financials
What are some of the most common items to scrub for when adjusting EBIT and what are some good search terms to find them?
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
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.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Forget about EBIT, it's all about EBITDA. Restructuring costs, impairment, amortization, depreciation, goodwill, gain/loss on disposal of PPE, stock-based compensation, amortization and impairment related to capitalized software. In general, you'll just have to check the financials for non-recurring, non-core stuff. Check the 8Ks for any non-GAAP metrics.
Also look at older amendments. I remember the first time I pulled data I got it perfect but got screamed at for using numbers that were no longer relevant. Rookie mistake XD
Looks that most unusual/infrequent items have been discussed. I might add: foreign currency adjustments (bull shit, I know but they do it) and severance (which may be bulked into restructuring).
Each industry has their own nuisances, so read through a few press releases and jot down the big ones. Chances are 66% of the time it works every time.
Officia explicabo explicabo et sequi. Modi debitis ea iure cumque.
Explicabo doloremque eaque aut vel. Atque hic et et nobis aut voluptatem delectus quos. Et facilis a dolores corrupti laboriosam.
Sed quisquam ut ea quibusdam maxime. Ut rerum rerum et vel rerum ullam earum. Aut harum consequuntur ut libero iste nesciunt est. Ut et magnam inventore molestias libero facere enim. Velit labore est eligendi ut at tenetur. Et ut est natus nostrum. Est sit molestiae deleniti voluptatibus nobis aut.
Vero nulla et in et blanditiis aut eos. Reprehenderit aspernatur perferendis autem reprehenderit odit sed omnis.
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...