Is it just me or is working capital adjustments more confusing than ebitda adjustments? 6 months in and i’m still confused with the adjustments.

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likefunnyhelpful

For sure they are. Just takes a while to get used to them, when I first started everyone said start with QoE that impact NWC to get the easy ones and then ask the manager to help ID the other NWC adjustments

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Agreed

They are - don't sweat it. Keep leveraging prior deals/reports to try and wrap your mind around them. It'll click

I’ve been doing FDD for a 1.5 years now, and I still get hang up on it.

If your change in adjusted NWC = your ebitda adjustment you’re golden

You’re essentially just removing all cash, debt, accrued interest, non-operating items, non-recurring items and out-of-period items from CA or CL accounts. Plus you need to calculate any NWC impact from your QE adjustments and you’re done. Obviously things can get more complex with messy deals, but that is the typical process I go thru when approaching NWC.

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