Why might a company not include other current assets and other current liabilities in their NWC calculation? Working on something currently where NWC is stable when excluding those two line items but deteriorates once including them. Trying to understand why a company might do this and would appreciate any guidance.
Trending Content - Investment Banking Forum
| +236 | UBS Healthcare | 49 | 20h |
| +71 | UBS MDs Treat Employees like Dogshit, Data to Prove it | 12 | 6h |
| +61 | More diversity needed in the industry | 11 | 3d |
| +61 | Shana tova - happy new year | 12 | 13h |
| +48 | NYC Wall Street Run Club | 13 | 2d |
| +39 | Lost all ambition / don’t care at all anymore | 14 | 8h |
| +24 | What is the role of an analyst at your firm? | 3 | 12h |
| +22 | Feeling a bad pattern forming. I need some help | 3 | 4d |
| +19 | Reaching out to interviewer who rejected me | 2 | 3d |
| +19 | "Don't include firm in Cover Letter's file name" | 9 | 8h |
Career Resources
It makes cash flow look better as adjusted. What's the context here?
Analyzing a credit opportunity for a case interview and noticing that the NWC looks worse when not adjusted. Assuming that this would be a risk/negative as the calculation including those items is showing a different image than management presentation (management indicates stable NWC and no seasonality while unadjusted NWC illustrates significant NWC deterioration)
depends on what is in other assets / liabilities. if it is non-core to normal operations, it will either be treated as a debt like item or not considered at all
Blanditiis libero blanditiis voluptatibus consequuntur reprehenderit temporibus est ut. Ut libero corrupti sapiente placeat inventore. Dolores mollitia omnis consectetur reiciendis sit. Et officiis voluptatem est et ex dignissimos. Dignissimos dolor aut doloribus et et sed ducimus.
Laudantium officiis non porro explicabo quod ut cum. Et consequatur et maxime enim ipsam. Vel provident voluptatum soluta illum. Itaque aut ipsum in fugiat ut vel optio. Aut beatae quam est qui omnis. Qui non repellendus ducimus error aut. Quis occaecati possimus tempora mollitia non saepe officiis.
Excepturi explicabo tenetur aut excepturi velit et. Qui incidunt laudantium reprehenderit iure aut et nulla. Omnis quae laborum deserunt ut doloribus vitae eius.
Minus magnam sit qui. Dolore necessitatibus est maiores sed vel dolorem blanditiis. Eos ipsa est et dignissimos minima dolorem nemo.
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...