Posted by houseofordos > 2014-04-12 20:51 | Report Abuse

KC would you consider investment in associates to be invested capital ? How bout that also being part of capex in fcf calculation?

Posted by kcchongnz > 2014-04-13 05:11 | Report Abuse

"Investment is associates" is an investment, not part of the ordinary business of the company. Its account is not consolidated into the account of the parent company.

Invested capital and FCF is about the activities of the ordinary business of a parent company

Posted by thwalim > 2014-04-13 09:31 | Report Abuse

Kc, need to check with you about IC's formula.Some using IC = (Total Assets) - (Excess Cash) - (Non-Interest-Bearing Current Liabilities, some using Total Equity + debts. May i know what is the pros and cons using each formula ? Thanks

Posted by kcchongnz > 2014-04-13 09:59 | Report Abuse

Posted by thwalim > Apr 13, 2014 09:31 AM | Report Abuse
Kc, need to check with you about IC's formula.Some using IC = (Total Assets) - (Excess Cash) - (Non-Interest-Bearing Current Liabilities, some using Total Equity + debts. May i know what is the pros and cons using each formula ? Thanks

All the formulas mentioned by you will give the same IC, provided that they are all simple balance sheets without items like "Investment in associates/JV", "deferred tax", "Ready-for-sale financial assets" etc. If they have any of these "non-conventional" items in a "standard" balance sheet, then they will be different. In that case, the formula suggested by me is simpler and easier to understand as "Invested capital", ie capital invested in an ordinary business.

Join my forthcoming online investment course and I would answer all questions online.

Posted by thwalim > 2014-04-13 10:02 | Report Abuse

Thanks KC. I given my email address to you. Just keep us posted. Thanks

Posted by nokenzo > 2014-04-13 11:57 | Report Abuse

Hi KC, I would like to join your online investment course, please let me know how to do it. Thanks. My email: nokenzo2@yahoo.co.uk

Posted by mansor80 > 2014-04-13 18:18 | Report Abuse

hi kc, would like to join your investment course.. pls let me know.. tq.
jebat_jb@yahoo.com