Working Capital

noel

Is it the same formula for calculating this for Capital Budgeting and FCF?

kingstongal

SkipE99 Wrote:
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> i have never seen the CL-interest bearing debt
> described as "less interest bearing debt"
>
> reference? it makes sense and I believe you since
> it works in the calculations, but is this in CFAI?

This is from Stalla and is consistent with their 2009 and 2010 material.

NO EXCUSES

madaochenggong

Austin12 Wrote:
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> Yep

Wrong. In capital budgeting its a straight CA - CL calculation. Under FCF valuation, NWC is calculated as (CA - Cash & equivalents) - (CL - Interest bearing debt).

NO EXCUSES

Houjichasan

i have never seen the CL-interest bearing debt described as "less interest bearing debt"

reference? it makes sense and I believe you since it works in the calculations, but is this in CFAI?

MiniMe7

check explanation on page 385 volume 4

in general accounting WC is current assets less current liabilities but for
cashflow and valuation WC excludes cash, cash equivalent, short term debt,and current portion of long term debt