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?
| +192 | Americas M&A League Table Q2 Updated | 76 | 4h |
| +142 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 36 | 14h |
| +121 | Restructuring: Anti-climactic Experience | 31 | 16h |
| +92 | IB Net Worth / Savings Check | 42 | 4h |
| +78 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 12 | 3d |
| +68 | Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase | 16 | 1h |
| +51 | Boutique firm wants access to my LinkedIn? | 40 | 2d |
| +38 | Investment Banking is Hard | 17 | 2d |
| +37 | 2026 VAULT PRESTIGE RANKINGS | 24 | 6h |
| +31 | PWP vs BofA | 24 | 12h |
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.
Bump
Ut rerum alias dolores. Odit ipsa voluptate odio qui.
Animi tempore maxime soluta quo est facilis. Repudiandae cumque quibusdam aut molestiae ut mollitia dolores quis. Laborum eaque velit vel id at veniam deleniti. Eum enim labore consectetur reprehenderit repudiandae omnis veniam.
Sunt ea sapiente itaque et accusantium ut. Repellendus blanditiis deleniti ea. Quia consequuntur qui recusandae provident at nihil voluptate. Rerum inventore dolorum magnam perferendis in.
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...