Any idea the chances of the S &P cash flow formulas and ratios showing up. They are time consuming to memorize since they are not the same as elsewhere in the material.
u mean FFO, FOCF, DCF and PCF? from SS14?
I haven’t even thought of those. I don’t have my books handy, what does the LOS say? Hopefully it doesn’t say calculate or demonstrate.
that might be my most hated LOS. i HATE it.
Funds from Operations (FFO) = NI + NCC Cash Flow from Operations (CFO) = FFO +/- WC ACCTS Free Operating CF (FOCF) = CFO - CAPX Discretionary CF (DCF) = FOCF - DIV Prefinancing CF = DSC - acquisitions + asset disposals net other sources/uses of cash debt service coverage: FOCF + interest / annual principle repayment obligation + interest debt payback period: total debt / discretionary CF
LOS says “calculate and interpret the key financial ratios used by credit analysts”. However, there are ratios like Current Ratio, Acid Test, Long Term debt to Capitalization, Total Debt, EBIT interest coverage, EBITDA interest coverage.
S&P cf calculations appear in an EOC… I think they are fair game.
mmoreda Wrote: ------------------------------------------------------- > S&P cf calculations appear in an EOC… I think > they are fair game. +1 A good mnemonic is that FOCF is equal to FCFF without the interest*(1-T) adustment.