WC vs. NOA vs. Monetary

someone, net, difference, capital, assets

Could someone quickly explain the difference among working capital, net operating assets, and monetary assets? Thank you.

jarobi04

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发表于 2011-7-13 15:56 | 只看该作者

WC = Change in current assets - Change in curent Liabilities
= (change in current assets - cash and equiv) - (current liabilities - notes payable - current
portion of LT debt)

NOA = Net Assets - Net Liabilities
= (Total Assets - cahs and equiv) - (Total liab - Total Debt)

Monetary assets are cash and receivables, and liabilities include all debt and AP

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Kapie

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发表于 2011-7-13 15:56 | 只看该作者

Working capital is current assets - current liabilities. Changes in working capital are used in calculating FCF, although we actually use changes in net working capital (ex. cash and short-term debt/notes payable).

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SeanWest

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发表于 2011-7-13 15:56 | 只看该作者

Monetary assets are money or something that can be converted to money :p

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Rasec

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发表于 2011-7-13 15:56 | 只看该作者

WCInv and NOA are somewhat related. I remember them like this:

in calculation of WCInv everything is related to CURRENT assets/liabilities/debt

WCInv = change in [(Current Assets - cash&eqv) - (Current Liabilities - Current Debt)]

notes payable is short term debt so it is current, current portion of long term debt is current as well.

For NOA everything is related to TOTAL assets/liabilities/debt

NOA = (Total Assets - cash&eqv) - ( Total Liabilities - Total Debt)

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WC vs. NOA vs. Monetary

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