90 secs each, max 1. write offs – nonrecurrng or recurring? continued or discontinued ops? 2. name 1 way to adjust book val per share and one way to get at TBVPS, tangible book per share 3. LIFO overstates inventory on balance sheet – true of false? 4. what effect will shady reve recognition have on a P/S multiple? 5. discuss why bill and hold revenue recognition should be “backed out” by an analyst? 6. name 2-3 DRAWBACKS of price/cash flow ratio. 7. what is harder to manipulate: cash flow or sales?
yes no no depends sometimes could be doubt it
Write-off… like a loss on a fixed asset? It’s non-recurring but it’s ops 2) Not sure what you’re looking for 3) Lifo understates in a rising cost environment with stable inventory levels. 4) Lowers the ratio probably due to recognizing revenue more aggressively than you should (e.g. booking unearned revenue as actual sale) 5) Not familiar 6) But I love price/cash! It’s oh so hard to manipulate! 7) CF
- Subtract out goodwill or patents? 1. Write off - nonrecuring from continued operations. reported ABOVE the line
daj224 Wrote: ------------------------------------------------------- > 90 secs each, max > > 1. write offs – nonrecurrng or recurring? > continued or discontinued ops? nonrecur, continuing > > 2. name 1 way to adjust book val per share and one > way to get at TBVPS, tangible book per share adjust BVPS for inventory diff across firms, back out goodwill to get @ TBVPS > > 3. LIFO overstates inventory on balance sheet – > true of false? false > > 4. what effect will shady reve recognition have on > a P/S multiple? bring it down > > 5. discuss why bill and hold revenue recognition > should be “backed out” by an analyst? not sure, book says very little, but apparently sunbeam did it to meet the quarter and later restated > > 6. name 2-3 DRAWBACKS of price/cash flow ratio. > THIS IS A GOOD ONE, MOST PEOPLE ADORE CASH FLOW, BUT THE P/CF RATIO HAS DRAWBACKS. one, what cash flow are we talking about – hard to pin down. Two, if using FCFE, a lot of firms have FCFE that is < than CF (b/c of CAPX clealry) third, EBITDA as a prxy for CF ignore changes in Working capital > 7. what is harder to manipulate: cash flow or > sales? cash flow. sales DO get massaged, ie “front loading”