Does anyone have an intuitive explanation for the ratios used for Working Capital Drivers when building an operating model? For example why is Deferred Tax Assets divided by COGS rather than Sales? Why are Client Deposits divided by Sales and Income Taxes Payable divided by Sales?
Is there an intuitive rule of thumb to follow?
Bump
Enim quia et provident quia blanditiis. Illo animi rerum doloremque omnis eaque. Quia sed sunt consequatur ea praesentium. Sed nihil corrupti dignissimos est voluptatem dolor.
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...