Wall Street Prep

Break-Even Point Analysis | Formula, Definition & Calculation Example

The Break-Even Point (BEP) refers to the necessary level of output for a company’s revenue to be equal to its total costs. Or said differently, the break-even point is the ... Read More

Operating Leverage | Definition, Formula & Example DOL Calculation

Operating Leverage measures the proportion of a company’s cost structure that consists of fixed costs rather than variable costs. A company with more fixed costs relative to its variable costs ... Read More

Cash Conversion Cycle (CCC) | Definition, Formula & Example Calculation

The Cash Conversion Cycle (CCC) measures the approximate number of days it takes a company to convert its inventory into cash after a sale to a customer. By consistently monitoring ... Read More

Days Payable Outstanding (DPO) | Formula and Meaning Explained

Days Payable Outstanding (DPO) measures the number of days a company takes on average before paying outstanding supplier/vendor invoices for purchases made on credit. The accounts payable (AP) line item ... Read More

Days Sales Outstanding (DSO) | Formula and Example Calculation

Days Sales Outstanding (DSO) is a metric used to gauge how effective a company is at collecting cash from customers that paid on credit. Just as a quick review, the ... Read More

Inventory Turnover & Days Inventory Outstanding (DIO) | Ratio Analysis

Inventory Turnover measures the approximate number of times that a company clears out its inventory in a given period, while Days Inventory Outstanding (DIO) is the number of days it ... Read More

Depreciation Schedule | Formula, Meaning & Example Excel Calculation

The Depreciation Schedule is used to track the accumulated loss and remaining value of a fixed asset based on its useful life assumption. Depreciation is a non-cash expense that reduces ... Read More

Unlevered vs Levered FCF Yield | Formula & Calculation Differences

The Free Cash Flow Yield measures the amount of cash generated from the core operations of a company relative to its valuation. Based on whether an unlevered or levered cash ... Read More

Free Cash Flow to Equity (FCFE): Levered FCF Calculation & Formula

Free Cash Flow to Equity (FCFE) measures the amount of cash remaining for equity holders once operating expenses, re-investments, and financing-related outflows have been accounted for. FCFE, or commonly referred ... Read More

Free Cash Flow to Firm (FCFF): Unlevered FCF Calculation & Formula

Free Cash Flow to Firm (FCFF) refers to the cash generated by the core operations of a company that belongs to all capital providers (both debt and equity). Used interchangeably ... Read More

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The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.