What is NOPAT? NOPAT stands for Net Operating Profit After Tax and represents a company’s theoretical income from operations if it had no debt (no interest expense). NOPAT is used to make companies more comparable by removing the impact of their capital structure. In this way, it’s easier to compare two companies in the same…
What is a Due Diligence Report? This article outlines what a due diligence report should cover and what questions need to be answered with mergers and acquisitions. A due diligence report is sent as an internal memo to members of the executive team who are evaluating the transaction and is a requirement for closing the…
Sheet Name Code Template This sheet name code template allows you to display the name of an Excel sheet in a cell using a combination of formulas. Here are the screenshots of the sheet name code template: Download the Free Template Sheet Name Formula =MID(CELL(“filename”,A1),FIND(“]”,CELL(“filename”,A1))+1,500) (See screenshots below) Example of creating the sheet name code: Step…
What is the Unlevered Cost of Capital? The unlevered cost of capital is the implied rate of return a company expects to earn on its assets, without the effect of debt. A company that wants to undertake a project will have to allocate capital or money for it. Theoretically, the capital could be generated either…
Example of Forward-Looking Statements This is an example of forward-looking statements for an investor relations presentation on behalf of a public company. Note: this example is for educational purposes only and should not be relied upon for any other use. Forward-Looking Statements Certain information set forth in this presentation contains “forward-looking information”, including “future-oriented financial…
Overview and Fundamentals of Section 368 Section 368(A)(1) outlines a format for US tax treatment of corporate reorganizations, as described in the Internal Revenue Code of 1986. The reorganization transactions, however, must meet certain legal requirements to classify for the favorable treatment. Additionally, there has been further precedent outside of the codified requirements that have developed…
Investment Banking Job Description This investment banking job description was inspired by the responsibilities outlined by a list of investment banks including Goldman Sachs, Morgan Stanley, Credit Suisse, UBS, and Barclays. To ensure you have the skills required for the job, check out CFI’s investment banking courses now! Key Responsibilities Development of various types of financial models to…
How Do You Value a Mining Asset? Mining assets are very challenging to value. Given the degree of geologic uncertainty around reserves and resources, it’s hard to know how much metal is actually in the ground. This guide to mining valuation will teach you all you need to know to value an asset! The best…
What is the Sharpe Ratio Calculator? The Sharpe Ratio, also known as the Sharpe Index, is named after American economist William Sharpe. The ratio is commonly used as a means of calculating the performance of an investment after adjusting for its risk that allows investments of different risk profiles to be compared against each other….
