Equity Research
Bridge net income of $100M to free cash flow: D&A $40M, working capital increases $15M, capex $45M. Interpret the result.
Model answer
Start with net income of $100M, add back non-cash D&A of $40M, subtract the $15M working-capital build (cash consumed as receivables/inventory grow) to get operating cash flow of $125M; subtract…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Equity Research
- What does a sell-side equity research analyst actually do day to day?
- What is the difference between sell-side and buy-side research?
- How is equity research different from investment banking, both day to day and in the interview?
- Who pays for sell-side research, and how did MiFID II change the economics?
- What does a typical coverage universe look like, and how do analysts add names?
- Walk me through an equity research team's workflow during earnings season.