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What is a working capital adjustment?

A working capital adjustment is a type of purchase price adjustment seen in the acquisition of a business. A buyer would demand a working...

Operating working capital

What is operating working capital? Operating working capital (OWC) measures a company's short-term financial health and operational...

MOIC Private Equity

What is the multiple on invested capital (MOIC)? MOIC stands for "Multiple on Invested Capital" and is a widely accepted measure of...

How are the three financial statements linked?

The short answer How are the three financial statements linked? Net income flows from the company's income statement to the balance sheet...

EBITDA vs. gross profit

EBITDA vs. gross profit – A quick overview Gross profit and EBITDA (earnings before interest, taxes, depreciation, and amortization) show...

Unlevered free cash flow

What is Unlevered Free Cash Flow? Unlevered Free Cash Flow (UFCF) is a company's cash flow available to both capital providers (debt and...