Question
Is there a reason why Trade Receivables (asset on balance sheet) would be excluded from the Change in Net Operating Working Capital calculation? The background
Is there a reason why "Trade Receivables" (asset on balance sheet) would be excluded from the Change in Net Operating Working Capital calculation?
The background behind the question is we are trying to get to Free Cash Flow to the Firm. We have NOPAT, Depreciation and Amortization, and Capital Expenditures. We need the Change in NWC, but curious as to why "Trade Receivables" would be excluded from the Change in Net Operating Working Capital?
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
