Please tell me something missing from below:
| +365 | Evercore Intern Seizure | 54 | 12h |
| +70 | JPM M&A is Gone??? Purely Coverage Banking??? | 31 | 11h |
| +62 | Is DCM actually underrated ? | 24 | 22h |
| +51 | How do I understand vs. just memorizing? | 8 | 2h |
| +48 | Losing my personality in Banking | 9 | 22h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 23h |
| +42 | Associate & Above IB exits | 16 | 4d |
| +33 | Incoming IB Analyst: Best Ways to Prepare? | 11 | 2h |
| +27 | Which groups are ideal for laterals? | 12 | 22h |
| +24 | Thoughts on PEI Global Partners? | 4 | 1d |
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.
Couple key things you're missing are working capital and capex requirements, asset depreciation and tax position. Ultimately, leverage is all about cash flow and all about prospective evaluation but all the factors you have are solid. Just how you estimate future trajectory and how you weight them. One other thing to remember is that not all debt is equivalent and leverage ratios need to be adjusted given covenants, security type, and of course, duration. But push comes to shove, free cash flow is king.
Agree here, and one level further is how each of the above factors may change in different scenarios. For example, if a business experiences a downturn but capex can safely be ratcheted down in response, cash flows won't be much impeded. You could imagine the opposite scenario as well. Same goes for opex, working capital, etc. Evaluating different operating and financing scenarios is at the heart of determining the appropriate leverage / structure in a business, particularly LBOs or dividend recaps with high yield debt and a large amount of leverage.
rrrrr
Soluta tempore reiciendis voluptas et. Optio ea corrupti et veritatis non et eius omnis. Ut in laudantium praesentium accusamus nam. Corporis molestiae non veritatis eum tenetur consequatur. Ipsam rerum veniam est cumque nesciunt sapiente.
Unde cumque enim delectus. Saepe quia dolor sunt minima qui qui. Nobis non perspiciatis eaque nulla rerum iusto eveniet. Labore quam similique voluptatibus vero blanditiis est. Corporis voluptate pariatur maxime. Sint facere enim ea impedit.
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...