For sell side, do you typically include customer deposits and unclaimed funds in NWC? Or would they be in net debt?

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Customer deposits collected for regular trading activity should stay in NWC, provided that they will unwind within a year or one operating cycle. Escheat liability for funds that have remained unclaimed for over a year would be a debt-like item as it has to be transferred to state after certain period.

Lad says it like he's reading the dictionary. You can argue it argue it either way.

Sell side says NWC, Buy side will say debt.

On one hand it's part of their operating cycle, on another it's cash for work they've not yet delivered. There's more complex nuances but that's contradiction.

Same with accrued bonuses. Reward for past performance or predictable annual working capital cycle? You have the cost in ebitda, why wouldn't you have the liability in working capital?

Yet I bet you think accrued bonuses (which are in ebitda) as debt and customer deposits (that aren't in ebitda) as nwc... Funny old world.

There's no fact, just negotiation and market "norms".

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