Days sales outstanding: calculate DSO and forecast receivables
Calculate DSO three ways on a seasonal distributor, catch the year-end snapshot that flatters collections, and turn a defended day-count into a forecast receivables balance.
THE FINX JOURNAL LEARN BY DOING
Financial modeling
Understand how a model fits together, follow its connections and practice finding the mistakes behind the numbers.
In this topic
PAGE 4
Depreciation schedule in Excel: connect capex, depreciation and net PP&E
Build a three-year property and equipment schedule in Excel: a cohort table for the charge, roll-forwards for gross and accumulated, and the checks.
WACC formula: assemble and audit the discount rate
Assemble Northgate's WACC in Excel from a transparent, cell-by-cell assumptions table, cross-check it two ways, and see how a 0.37-point error moves a terminal value.
Interest coverage ratio: calculate it and explain what changed
Calculate three years of interest coverage on a fictional borrower, compare EBIT and EBITDA conventions, run a downside and reconcile the interest figure to the debt schedule.
Terminal value formula: two methods with a worked DCF example
Calculate terminal value using perpetual growth and exit multiples. Follow worked Excel formulas, discount to today, and check each method's implied assumptions.
Unlevered free cash flow: bridge EBITDA to cash
Reconcile EBITDA to unlevered free cash flow in one worked example, cross-check it with a tax-shield shortcut, and see how the levered figure differs.