Hey man, i love this video, thanks for writing this out!
With the 'deployed capital', isn't there $300m of working capital, subtract $100m cash at end of quarter, plus $100m of PPE? So deployed capital of $300m, not $200m?
Can't get my head around this after watching the vid a bunch of times
Hey man, i love this video, thanks for writing this out!
With the 'deployed capital', isn't there $300m of working capital, subtract $100m cash at end of quarter, plus $100m of PPE? So deployed capital of $300m, not $200m?
Can't get my head around this after watching the vid a bunch of times
Wait on further thoughts, it seems 'liquid assets' ignores the $100m left in inventory after turning $100m into cash.
And also 'deployed capital' doesnt include inventory too.
I wonder why this isn't included in the deployed capital??
Deployed Capital Calculation:
Working Capital (excluding cash): $285.9m - $19.3m cash = $266.6m
Property, Plant & Equipment (PP&E): $100m
Deployed Capital = Working Capital (ex-cash) + PP&E
= $266.6m + $100m
= $366.6m
If we calculate it with 100m in cash and use a discount on the inventory, we would have a total of deployed capital of 286.6m.
Li Lu kept it super simple, so that everyone could follow on the spot during the lesson. It is too hard to follow otherwise - but it gets afterwards
Thank you for such a great post. Really thought provoking.
Glad that you enjoy it
Where do you find the numbers he recalls on the tables? I don't really seem them :/