100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
WSP Financial Modeling/ Accounting Questions and Correct Answers $8.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Financial Modelling
  4.  
  5. Financial Modelling

Exam (elaborations)

WSP Financial Modeling/ Accounting Questions and Correct Answers
 0 purchase
  • Course
  • Financial Modelling
  • Institution
  • Financial Modelling

Calculating EBITDA -EBITDA is a non-GAAP metric so you usually won't find it in the 10K/Q -if you go by the literal def of EBITDA you only need to add back D&A (found in CFS) -most analysts also exclude stock based compensation expense (also in the CFS), so add this back as well -in addition to SBC...

[Show more]

Preview 1 out of 4  pages

Document information

  • August 14, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • wsp financial modeling accounting questions and c
  • calculating ebitda ebitda is a non gaap metric s
  • in addition to sbc and da some companies provid

Written for

  • Financial Modelling
  • Financial Modelling

Seller

avatar-seller
twishfrancis

Reviews received

Content preview

WSP Financial Modeling/ Accounting
Questions and Correct Answers
Calculating EBITDA ✅-EBITDA is a non-GAAP metric so you usually won't find it in the
10K/Q
-if you go by the literal def of EBITDA you only need to add back D&A (found in CFS)
-most analysts also exclude stock based compensation expense (also in the CFS), so
add this back as well
-in addition to SBC and D&A, some companies provide disclosures that could justify
making other adjustments to arrive at EBITDA

Working Capital ✅Accounts Receivable
Inventory
Accounts Payable
Accrued Expenses & Deferred Revenue

Forecasting Accounts Receivable (AR) ✅-forecasting logic: grow AR @ rev. growth
rate unless you have a specific thesis
-modeling wrinkle: allow user to override w/ a different AR assumption than growing w/
revenue
-always track DAYS SALE OUTSTANDING (DSO) = AR/ Revenue x Days in the Period

Forecasting Inventory ✅-forecasting logic: grow with the rate that COGS is growing
because inventory cycles through COGS on the I/S
-modeling wrinkle: allow user to override with a different inventory assumption than
growing with COGS
-always track inventory turnover: COGS/Inventory

Inventory Turnover ✅COGS/Inventory

Accounts Payable (AP) ✅-logical driver: grow with COGS (or revenue in some cases)
-modeling wrinkle: allow user to override w/ a different AP assumption than growing
w/COGS
-Track Days Payable: AP/ COGS x days in period

Accrued Expenses ✅-wages, taxes, and other expenses related to operations
-forecasting logic: grow with revenue ( or operating expenses) because operating
expenses grow as the revenues grow
-modeling wrinkle: allow user to model a different assumption than simply growing with
revenue

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller twishfrancis. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $8.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$8.99
  • (0)
Add to cart
Added