Does anyone want to take a crack at defining the following? they show up all over the place, in different equations and scenarios. I wanna have a list and just write it out so I am clear…I’ve lost at least 3 marks on Mocks cause I used a different definition… If someone is feeling EXTRA generous, could they also accompany the formula with an example of when it is used? If not, no worries … =) Total Capital = Invested Capital = Equity Capital = NOA = NWC = NOPAT = NOPLAT = EV = EBIT = Operating Income = Capitalization =
Total Capital = Invested Capital = Equity Capital = NOA = (asset-cash)-(lia-debt) NWC = (CA-cash)-(CL-debt) NOPAT = EBIT(1-t) NOPLAT = EV = mkt(debt+eq)-cash-STinv EBIT = Operating Income = EBITDA in credit analysis, EBIT elsewhere Capitalization = That’s all I can remember.
Total Capital = Equity + total Debt Invested Capital = Equity + LTD, or WC + Net Property Plant and Equipment Equity Capital = Pretty sure this is just Equity (stock, pref stock?) NOA = (asset-cash)-(lia-debt) NWC = (CA-cash)-(CL-NP - Current portion of LT Debt) NOPAT = EBIT(1-t) NOPLAT = also EBIT(1-T), or NI - Net int after tax = EBIT(1-T) +/- Change D taxes = NOPLAT EV = mkt(debt+eq)-cash-STinv EBIT = Earnings before interest and tax (this is probably pretty crucial to know) Operating Income = EBITDA in credit analysis, EBIT elsewhere Capitalization = Im guessing you mean market capitalization? = stock price* Shares.
Capitalisation is mentioned in Fixed Income - Credit Analysis I think it is: LT Debt + Current Liabilities + Shareholders Equity (incl. preferred shares) + Minority Interest
NOA = (asset-cash)-(lia-debt) just a slight clarification, liabilities include everything except LONG term debt, this is correct?
(lia-debt) = liabilities - LT debt - note payables