5 Comments
 

They are not included since dividend payouts are not reflected on the balance sheet unless they are accrued. They will be included in that case as a current liability.

Banking > VC > Tech PE; PM me if you would like any advice I'm happy to help
 

Not included.

Think about it in terms of operating vs. financing activities. Dividend payouts are not directly tied to the core operations of a business, so exclude it from your calculation of OWC.

 

Thank you so much for responding to my post. This is also true if the line item is dividends payable, correct? Dividends payable as in an accrued expense on the liabilities side of the balance sheet. My book states that taxes payable should be included, which is why I am confused. There is no mention of dividends payable in this book. Thank you!

 

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