-
Capital IQ Course: Companies Screening | Part 4
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, ana...
published: 10 Mar 2021
-
How to Screen in Capital IQ Database
Screening is a important part of this database which we should learn for ease of doing heavy work.
published: 14 Oct 2017
-
Screening for Stocks on S&P Capital IQ: A Quick Tour
Investors have always screened stocks, looking for bargains. In fact, Ben Graham developed screens for cheap stocks in Intelligent Investor that many value investors draw upon. In this session, I start with a quick introduction to why and how we screen for stocks, and then spend the bulk of the session on the mechanics of screening for stocks on S&P Capital IQ. While you may not have access to Capital IQ, there are other global datasets that you can now access, at relatively low cost, and much of what I say in this session will work on other databases as well.
Blog post on screening: http://aswathdamodaran.blogspot.com/2012/06/passive-value-investing-screening-for.html
published: 21 Oct 2020
-
How To Manage Open Positions, Monitor Your Money | Capital.com Trading App
Learn how to manage open positions and monitor your money using Capital.com Desktop App, in our how to use Capital.com desktop app series.
***
Explore trading and start investing with Capital.com.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.17% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This video is for general information only and is not intended to provide trading or investment advice or any personal recommendations. The information in this video is indicative, and may become out of date at any given time.
Capital.com shall not be responsible for any loss that you inc...
published: 03 May 2022
-
Capital IQ Course: Dashboard & Features | Part 1
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, ana...
published: 17 Feb 2021
-
A Look Inside SMB Capital
Register for our free intensive trading webinar http://smbu.com/YouTube
Get the Daily Video! http://www.smbtraining.com/dailyvideo
http://www.smbtraining.com is a Proprietary Trading firm located in NYC that specializes in trading equities. Our training programs were designed to help you develop the trading skills to become a consistently profitable trader. Written, video and classroom lectures are offered through SMB U, our education company. SMB offers training and trading products for new and semi-experienced traders.
Learn more about SMB by checking us out at http://www.smbtraining.com.
SMB Blog http://www.smbtraining.com/blog
Facebook https://www.facebook.com/smbcap
Twitter: https://twitter.com/smbcapital
published: 20 Jun 2018
-
Streamline Your Private Equity Workflow with S&P Capital IQ Pro
The S&P Capital IQ Pro platform provides the essential data, insights, and workflow tools to help Private Equity professionals succeed across multiple areas. Hit the ground running on origination, managing LPs, or assessing market conditions with access to deep and broad datasets from a single source of intelligence. Watch our video to learn more about Capital IQ Pro and click here to dive deeper: https://www.spglobal.com/marketintelligence/en/solutions/sp-capital-iq-pro?utm_medium=social&utm_source=youtube&utm_campaign=SM-230327-PC-GL-CT-DC-CIQPro-WorkflowIntroVideo
published: 12 Apr 2023
-
Working Capital and the Change in Working Capital in Valuation and Financial Modeling [REVISED]
Learn more: https://breakingintowallstreet.com/core-financial-modeling/?utm_medium=yt&utm_source=yt&utm_campaign=yt18
Resources:
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Change-in-Working-Capital-Slides.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Working-Capital.xlsx
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Target-Financial-Statements.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Best-Buy-Financial-Statements.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Zendesk-Financial-Statements.pdf
Table of Contents:
0:00 Introduction
2:45 Part 1: Why We Care About the Change in Working Capital
4:33 Part 2: What is “Working Capital”?
9:56 Part 3: The Change in Wor...
published: 22 Oct 2020
-
Capital IQ Course: Transactions Screening and Idea Generation | Part 5
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, ana...
published: 17 Mar 2021
-
How to Monitor Your Balance | Capital.com Trading app
Learn how to monitor your balance using the Capital.com mobile trading app.
***
Explore trading and start investing with Capital.com.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.17% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This video is for general information only and is not intended to provide trading or investment advice or any personal recommendations. The information in this video is indicative, and may become out of date at any given time.
Capital.com shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment ...
published: 01 Apr 2022
6:01
Capital IQ Course: Companies Screening | Part 4
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copy...
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, analysis, and valuation on private and public companies. This course also shows you how to utilize the CapIQ Excel plug-in in your day-to-day company analysis and valuation.
-- About Corporate Finance Institute® --
Corporate Finance Institute® (CFI) is a leading global provider of online financial modeling and valuation courses. Since 2016, CFI’s programs and certifications have been delivered to over 800,000 individuals at top universities, investment banks, accounting firms, and operating companies around the world. The modern financial analyst requires a well-rounded skill set that takes time to acquire. Some of the skills are developed in university, some are developed on the job, and some of the skills come from experience and developing a strong business intuition. At CFI, we combine all three skill sets — theory, application, and intuition — into a condensed, self-paced program that can be taken anytime, anywhere.
Learn about the FMVA® Certification Program: https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections
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https://wn.com/Capital_Iq_Course_Companies_Screening_|_Part_4
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, analysis, and valuation on private and public companies. This course also shows you how to utilize the CapIQ Excel plug-in in your day-to-day company analysis and valuation.
-- About Corporate Finance Institute® --
Corporate Finance Institute® (CFI) is a leading global provider of online financial modeling and valuation courses. Since 2016, CFI’s programs and certifications have been delivered to over 800,000 individuals at top universities, investment banks, accounting firms, and operating companies around the world. The modern financial analyst requires a well-rounded skill set that takes time to acquire. Some of the skills are developed in university, some are developed on the job, and some of the skills come from experience and developing a strong business intuition. At CFI, we combine all three skill sets — theory, application, and intuition — into a condensed, self-paced program that can be taken anytime, anywhere.
Learn about the FMVA® Certification Program: https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections
-- JOIN US ON SOCIAL MEDIA --
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YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
- published: 10 Mar 2021
- views: 28433
4:26
How to Screen in Capital IQ Database
Screening is a important part of this database which we should learn for ease of doing heavy work.
Screening is a important part of this database which we should learn for ease of doing heavy work.
https://wn.com/How_To_Screen_In_Capital_Iq_Database
Screening is a important part of this database which we should learn for ease of doing heavy work.
- published: 14 Oct 2017
- views: 9661
12:58
Screening for Stocks on S&P Capital IQ: A Quick Tour
Investors have always screened stocks, looking for bargains. In fact, Ben Graham developed screens for cheap stocks in Intelligent Investor that many value inve...
Investors have always screened stocks, looking for bargains. In fact, Ben Graham developed screens for cheap stocks in Intelligent Investor that many value investors draw upon. In this session, I start with a quick introduction to why and how we screen for stocks, and then spend the bulk of the session on the mechanics of screening for stocks on S&P Capital IQ. While you may not have access to Capital IQ, there are other global datasets that you can now access, at relatively low cost, and much of what I say in this session will work on other databases as well.
Blog post on screening: http://aswathdamodaran.blogspot.com/2012/06/passive-value-investing-screening-for.html
https://wn.com/Screening_For_Stocks_On_S_P_Capital_Iq_A_Quick_Tour
Investors have always screened stocks, looking for bargains. In fact, Ben Graham developed screens for cheap stocks in Intelligent Investor that many value investors draw upon. In this session, I start with a quick introduction to why and how we screen for stocks, and then spend the bulk of the session on the mechanics of screening for stocks on S&P Capital IQ. While you may not have access to Capital IQ, there are other global datasets that you can now access, at relatively low cost, and much of what I say in this session will work on other databases as well.
Blog post on screening: http://aswathdamodaran.blogspot.com/2012/06/passive-value-investing-screening-for.html
- published: 21 Oct 2020
- views: 31663
2:51
How To Manage Open Positions, Monitor Your Money | Capital.com Trading App
Learn how to manage open positions and monitor your money using Capital.com Desktop App, in our how to use Capital.com desktop app series.
***
Explore trading...
Learn how to manage open positions and monitor your money using Capital.com Desktop App, in our how to use Capital.com desktop app series.
***
Explore trading and start investing with Capital.com.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.17% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This video is for general information only and is not intended to provide trading or investment advice or any personal recommendations. The information in this video is indicative, and may become out of date at any given time.
Capital.com shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Any information relating to past performance of an investment does not necessarily guarantee future performance.
Please remember spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage, You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Invest only what you can afford to lose. These products may not be suitable for all clients, we therefore recommend that you seek independent advice and ensure you fully understand the risk involved before trading. You do not own, or have any interest in the underlying assets.
Professional clients can incur losses that exceed their deposits when spread betting and trading CFDs.
https://wn.com/How_To_Manage_Open_Positions,_Monitor_Your_Money_|_Capital.Com_Trading_App
Learn how to manage open positions and monitor your money using Capital.com Desktop App, in our how to use Capital.com desktop app series.
***
Explore trading and start investing with Capital.com.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.17% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This video is for general information only and is not intended to provide trading or investment advice or any personal recommendations. The information in this video is indicative, and may become out of date at any given time.
Capital.com shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Any information relating to past performance of an investment does not necessarily guarantee future performance.
Please remember spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage, You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Invest only what you can afford to lose. These products may not be suitable for all clients, we therefore recommend that you seek independent advice and ensure you fully understand the risk involved before trading. You do not own, or have any interest in the underlying assets.
Professional clients can incur losses that exceed their deposits when spread betting and trading CFDs.
- published: 03 May 2022
- views: 4135
10:56
Capital IQ Course: Dashboard & Features | Part 1
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copy...
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, analysis, and valuation on private and public companies. This course also shows you how to utilize the CapIQ Excel plug-in in your day-to-day company analysis and valuation.
-- About Corporate Finance Institute® --
Corporate Finance Institute® (CFI) is a leading global provider of online financial modeling and valuation courses. Since 2016, CFI’s programs and certifications have been delivered to over 800,000 individuals at top universities, investment banks, accounting firms, and operating companies around the world. The modern financial analyst requires a well-rounded skill set that takes time to acquire. Some of the skills are developed in university, some are developed on the job, and some of the skills come from experience and developing a strong business intuition. At CFI, we combine all three skill sets — theory, application, and intuition — into a condensed, self-paced program that can be taken anytime, anywhere.
Learn about the FMVA® Certification Program: https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections
-- JOIN US ON SOCIAL MEDIA --
LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi-
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https://wn.com/Capital_Iq_Course_Dashboard_Features_|_Part_1
Capital IQ Fundamentals - FREE | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motRKcK8Dhmg89yQxwxM_lJhW
Copyright © 2015 – 2021, CFI Education Inc. All Rights Reserved.
Enroll in the FREE full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, analysis, and valuation on private and public companies. This course also shows you how to utilize the CapIQ Excel plug-in in your day-to-day company analysis and valuation.
-- About Corporate Finance Institute® --
Corporate Finance Institute® (CFI) is a leading global provider of online financial modeling and valuation courses. Since 2016, CFI’s programs and certifications have been delivered to over 800,000 individuals at top universities, investment banks, accounting firms, and operating companies around the world. The modern financial analyst requires a well-rounded skill set that takes time to acquire. Some of the skills are developed in university, some are developed on the job, and some of the skills come from experience and developing a strong business intuition. At CFI, we combine all three skill sets — theory, application, and intuition — into a condensed, self-paced program that can be taken anytime, anywhere.
Learn about the FMVA® Certification Program: https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections
-- JOIN US ON SOCIAL MEDIA --
LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi-
Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi
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Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI
YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
- published: 17 Feb 2021
- views: 50237
1:57
A Look Inside SMB Capital
Register for our free intensive trading webinar http://smbu.com/YouTube
Get the Daily Video! http://www.smbtraining.com/dailyvideo
http://www.smbtraining.com ...
Register for our free intensive trading webinar http://smbu.com/YouTube
Get the Daily Video! http://www.smbtraining.com/dailyvideo
http://www.smbtraining.com is a Proprietary Trading firm located in NYC that specializes in trading equities. Our training programs were designed to help you develop the trading skills to become a consistently profitable trader. Written, video and classroom lectures are offered through SMB U, our education company. SMB offers training and trading products for new and semi-experienced traders.
Learn more about SMB by checking us out at http://www.smbtraining.com.
SMB Blog http://www.smbtraining.com/blog
Facebook https://www.facebook.com/smbcap
Twitter: https://twitter.com/smbcapital
https://wn.com/A_Look_Inside_Smb_Capital
Register for our free intensive trading webinar http://smbu.com/YouTube
Get the Daily Video! http://www.smbtraining.com/dailyvideo
http://www.smbtraining.com is a Proprietary Trading firm located in NYC that specializes in trading equities. Our training programs were designed to help you develop the trading skills to become a consistently profitable trader. Written, video and classroom lectures are offered through SMB U, our education company. SMB offers training and trading products for new and semi-experienced traders.
Learn more about SMB by checking us out at http://www.smbtraining.com.
SMB Blog http://www.smbtraining.com/blog
Facebook https://www.facebook.com/smbcap
Twitter: https://twitter.com/smbcapital
- published: 20 Jun 2018
- views: 69986
2:09
Streamline Your Private Equity Workflow with S&P Capital IQ Pro
The S&P Capital IQ Pro platform provides the essential data, insights, and workflow tools to help Private Equity professionals succeed across multiple areas. Hi...
The S&P Capital IQ Pro platform provides the essential data, insights, and workflow tools to help Private Equity professionals succeed across multiple areas. Hit the ground running on origination, managing LPs, or assessing market conditions with access to deep and broad datasets from a single source of intelligence. Watch our video to learn more about Capital IQ Pro and click here to dive deeper: https://www.spglobal.com/marketintelligence/en/solutions/sp-capital-iq-pro?utm_medium=social&utm_source=youtube&utm_campaign=SM-230327-PC-GL-CT-DC-CIQPro-WorkflowIntroVideo
https://wn.com/Streamline_Your_Private_Equity_Workflow_With_S_P_Capital_Iq_Pro
The S&P Capital IQ Pro platform provides the essential data, insights, and workflow tools to help Private Equity professionals succeed across multiple areas. Hit the ground running on origination, managing LPs, or assessing market conditions with access to deep and broad datasets from a single source of intelligence. Watch our video to learn more about Capital IQ Pro and click here to dive deeper: https://www.spglobal.com/marketintelligence/en/solutions/sp-capital-iq-pro?utm_medium=social&utm_source=youtube&utm_campaign=SM-230327-PC-GL-CT-DC-CIQPro-WorkflowIntroVideo
- published: 12 Apr 2023
- views: 467
29:17
Working Capital and the Change in Working Capital in Valuation and Financial Modeling [REVISED]
Learn more: https://breakingintowallstreet.com/core-financial-modeling/?utm_medium=yt&utm_source=yt&utm_campaign=yt18
Resources:
https://youtube-breakingintow...
Learn more: https://breakingintowallstreet.com/core-financial-modeling/?utm_medium=yt&utm_source=yt&utm_campaign=yt18
Resources:
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Change-in-Working-Capital-Slides.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Working-Capital.xlsx
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Target-Financial-Statements.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Best-Buy-Financial-Statements.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Zendesk-Financial-Statements.pdf
Table of Contents:
0:00 Introduction
2:45 Part 1: Why We Care About the Change in Working Capital
4:33 Part 2: What is “Working Capital”?
9:56 Part 3: The Change in Working Capital
14:47 Part 4: Working Capital for Best Buy and Zendesk
18:23 Part 5: Is Item X a Part of Working Capital?
21:40 Part 6: Wait, Why Don’t the CFS and BS Figures Match?!!
26:01 Recap and Summary
Lesson Outline:
We care about the Change in Working Capital because a company’s implied value always depends on its future cash flows, and a big component of Cash Flow is the Change in Working Capital.
Therefore, the Change in Working Capital could positively or negatively affect a company’s valuation, depending on its business model and market.
Traditionally, Working Capital is defined as Current Assets minus Current Liabilities, but that’s not how companies calculate it in their financial statements.
A better definition is Current Operational Assets minus Current Operational Liabilities, so we exclude items like Cash, Debt, and Financial Investments.
The meaning of a positive or negative Working Capital depends on *why* it is positive or negative.
The Change in Working Capital, as shown on the Cash Flow Statement, equals Old Working Capital – New Working Capital.
It’s the opposite of what you normally do because Working Capital is a *Net Asset* on the Balance Sheet, and when an Asset increases, that reduces cash flow; when an Asset decreases, that increases cash flow.
For example, imagine that a company’s Working Capital consists of a single line item: Inventory.
If the company’s Inventory increases from $200 to $300, it must have spent $100 of its cash flow to buy that additional Inventory.
Therefore, the Change in Working Capital = $200 – $300 = ($100), so it’s negative and reduces the company’s cash flow.
When the company finally sells and delivers these products to customers, Inventory will go back to $200, and the Change in Working Capital will be $0 once again.
Cash flow will increase not because of Working Capital, but because the company earns profits on the sale of these products.
If the Change in WC is negative, the company must spend in advance of its revenue growth – like a retailer ordering Inventory before it can sell and deliver its products.
If the Change in WC is positive, the company generates extra cash as a result of its growth – like a subscription software company collecting cash for a year-long subscription on day 1.
The Change in Working Capital, therefore, depends heavily on the company’s business model, such as when it collects cash from customers, when it pays suppliers, and when it pays for Inventory relative to product/service delivery.
For Best Buy and Zendesk, we look at metrics such as the Change in WC as a % of Revenue and as a % of the Change in Revenue.
Since the Change in WC as a % of Revenue is quite low for both of them (low single-digit percentages), we know that Working Capital is not that significant for either company.
As expected, though, Zendesk’s Change in WC as a % of the Change in Revenue are much more positive, averaging around 10%, because it is a subscription software company.
We receive many questions about whether various items, such as Deferred Taxes, Income Taxes Payable, and Operating Lease Assets and Liabilities should be part of Working Capital.
The short answer is that you should follow what the company does, and don’t worry that much about placement as long as the item correctly factors into Cash Flow from Operations.
The only point to watch out for is that changes in Cash, Debt, and Investments, should NOT be anywhere in Cash Flow from Operations or the Change in Working Capital. So, if the company does this, remove these items and re-classify them.
Finally, the Change in WC as calculated manually on the Balance Sheet will rarely, if ever, match the figure reported by the company on its Cash Flow Statement.
This is normal due to different groupings of items on the statements, changed accounting policies, acquisitions, divestitures, and so on.
Don’t panic about these minor mismatches – just focus on the overall Change in Working Capital relative to Revenue and the Change in Revenue and make sure it makes sense going forward.
https://wn.com/Working_Capital_And_The_Change_In_Working_Capital_In_Valuation_And_Financial_Modeling_Revised
Learn more: https://breakingintowallstreet.com/core-financial-modeling/?utm_medium=yt&utm_source=yt&utm_campaign=yt18
Resources:
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Change-in-Working-Capital-Slides.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Working-Capital.xlsx
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Target-Financial-Statements.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Best-Buy-Financial-Statements.pdf
https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-24-Zendesk-Financial-Statements.pdf
Table of Contents:
0:00 Introduction
2:45 Part 1: Why We Care About the Change in Working Capital
4:33 Part 2: What is “Working Capital”?
9:56 Part 3: The Change in Working Capital
14:47 Part 4: Working Capital for Best Buy and Zendesk
18:23 Part 5: Is Item X a Part of Working Capital?
21:40 Part 6: Wait, Why Don’t the CFS and BS Figures Match?!!
26:01 Recap and Summary
Lesson Outline:
We care about the Change in Working Capital because a company’s implied value always depends on its future cash flows, and a big component of Cash Flow is the Change in Working Capital.
Therefore, the Change in Working Capital could positively or negatively affect a company’s valuation, depending on its business model and market.
Traditionally, Working Capital is defined as Current Assets minus Current Liabilities, but that’s not how companies calculate it in their financial statements.
A better definition is Current Operational Assets minus Current Operational Liabilities, so we exclude items like Cash, Debt, and Financial Investments.
The meaning of a positive or negative Working Capital depends on *why* it is positive or negative.
The Change in Working Capital, as shown on the Cash Flow Statement, equals Old Working Capital – New Working Capital.
It’s the opposite of what you normally do because Working Capital is a *Net Asset* on the Balance Sheet, and when an Asset increases, that reduces cash flow; when an Asset decreases, that increases cash flow.
For example, imagine that a company’s Working Capital consists of a single line item: Inventory.
If the company’s Inventory increases from $200 to $300, it must have spent $100 of its cash flow to buy that additional Inventory.
Therefore, the Change in Working Capital = $200 – $300 = ($100), so it’s negative and reduces the company’s cash flow.
When the company finally sells and delivers these products to customers, Inventory will go back to $200, and the Change in Working Capital will be $0 once again.
Cash flow will increase not because of Working Capital, but because the company earns profits on the sale of these products.
If the Change in WC is negative, the company must spend in advance of its revenue growth – like a retailer ordering Inventory before it can sell and deliver its products.
If the Change in WC is positive, the company generates extra cash as a result of its growth – like a subscription software company collecting cash for a year-long subscription on day 1.
The Change in Working Capital, therefore, depends heavily on the company’s business model, such as when it collects cash from customers, when it pays suppliers, and when it pays for Inventory relative to product/service delivery.
For Best Buy and Zendesk, we look at metrics such as the Change in WC as a % of Revenue and as a % of the Change in Revenue.
Since the Change in WC as a % of Revenue is quite low for both of them (low single-digit percentages), we know that Working Capital is not that significant for either company.
As expected, though, Zendesk’s Change in WC as a % of the Change in Revenue are much more positive, averaging around 10%, because it is a subscription software company.
We receive many questions about whether various items, such as Deferred Taxes, Income Taxes Payable, and Operating Lease Assets and Liabilities should be part of Working Capital.
The short answer is that you should follow what the company does, and don’t worry that much about placement as long as the item correctly factors into Cash Flow from Operations.
The only point to watch out for is that changes in Cash, Debt, and Investments, should NOT be anywhere in Cash Flow from Operations or the Change in Working Capital. So, if the company does this, remove these items and re-classify them.
Finally, the Change in WC as calculated manually on the Balance Sheet will rarely, if ever, match the figure reported by the company on its Cash Flow Statement.
This is normal due to different groupings of items on the statements, changed accounting policies, acquisitions, divestitures, and so on.
Don’t panic about these minor mismatches – just focus on the overall Change in Working Capital relative to Revenue and the Change in Revenue and make sure it makes sense going forward.
- published: 22 Oct 2020
- views: 75958
7:13
Capital IQ Course: Transactions Screening and Idea Generation | Part 5
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CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, investment management, private equity, and more. This course consists of detailed screen demonstrations of the CapIQ functions and features frequently used by financial analysts in conducting research, analysis, and valuation on private and public companies. This course also shows you how to utilize the CapIQ Excel plug-in in your day-to-day company analysis and valuation.
-- About Corporate Finance Institute® --
Corporate Finance Institute® (CFI) is a leading global provider of online financial modeling and valuation courses. Since 2016, CFI’s programs and certifications have been delivered to over 800,000 individuals at top universities, investment banks, accounting firms, and operating companies around the world. The modern financial analyst requires a well-rounded skill set that takes time to acquire. Some of the skills are developed in university, some are developed on the job, and some of the skills come from experience and developing a strong business intuition. At CFI, we combine all three skill sets — theory, application, and intuition — into a condensed, self-paced program that can be taken anytime, anywhere.
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- published: 17 Mar 2021
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0:49
How to Monitor Your Balance | Capital.com Trading app
Learn how to monitor your balance using the Capital.com mobile trading app.
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CFDs are complex instru...
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Please remember spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage, You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Invest only what you can afford to lose. These products may not be suitable for all clients, we therefore recommend that you seek independent advice and ensure you fully understand the risk involved before trading. You do not own, or have any interest in the underlying assets.
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Learn how to monitor your balance using the Capital.com mobile trading app.
***
Explore trading and start investing with Capital.com.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.17% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This video is for general information only and is not intended to provide trading or investment advice or any personal recommendations. The information in this video is indicative, and may become out of date at any given time.
Capital.com shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Any information relating to past performance of an investment does not necessarily guarantee future performance.
Please remember spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage, You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Invest only what you can afford to lose. These products may not be suitable for all clients, we therefore recommend that you seek independent advice and ensure you fully understand the risk involved before trading. You do not own, or have any interest in the underlying assets.
Professional clients can incur losses that exceed their deposits when spread betting and trading CFDs.
- published: 01 Apr 2022
- views: 7569