6 Degrees of Separation from Cashflow
2 Key Ratios Financial Risk
- Debt/Equity (D/E)
- Capital Structure
- TNW
- Balance Sheet Ratio
2. Debt Service Capacity (DSC)
- P/L Ratio which links back to balance sheet
- Future equity (NTM)
Both ratios are interrelated. High DSC can support a higher D/E.
4 Buckets of Time
Projecting Financials Forward
