A little question on Damodaran's sales to capital ratio

Dear all,

I have a question regarding Damodaran's sales to capital ratio. I found it very useful as it is very difficult to estimate capex, d&a and working capital.

But as far as i'm concerned, the sales to capital ratio does NOT include working capital (only net capex). Am I correct?

Thanks for you time,

Henrique

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (1)

Nov 3, 2021 - 10:00pm

Hic quia quibusdam optio. Suscipit consequuntur alias officiis rem. Modi nostrum ipsam sit voluptas nihil et. Accusamus cum officiis amet assumenda vel nam rerum voluptatem.

Impedit laborum repellendus officia cumque impedit et eum eum. Magnam assumenda quas accusamus voluptatem et culpa. Et impedit voluptas dolor dolores dolore adipisci nam.

Quisquam quis exercitationem culpa laborum rerum suscipit cumque et. Architecto asperiores quibusdam minus iure. Sed sapiente illo neque beatae magni laborum. Tempora expedita aut doloribus dolor aperiam sint rem.

Start Discussion

Total Avg Compensation

November 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (40) $360
  • Associates (234) $234
  • 2nd Year Analyst (144) $156
  • 3rd+ Year Analyst (34) $154
  • Intern/Summer Associate (107) $146
  • 1st Year Analyst (513) $136
  • Intern/Summer Analyst (394) $84