New Constructs Models: Financials & Metrics- Adjustments

Welcome to the New Constructs tutorial for accessing and using the Adjustments page of our company models. Inside a company model, click Financials and Metrics. Then click Adjustments. Presented below are our adjustments for converting net income to NOPAT and converting reported net assets to invested capital, along with their impact on revenue and net assets. NOPAT and invested capital are the key components of ROIC, which drives economic earnings. Also included is a detailed list of non-operating expenses bundled in operating expenses. In addition to showing the values of adjustments, we also present the net income adjustment as a percentage of revenues and the reported net assets adjustments as a percentage of net assets. These metrics provide a measure of the relative magnitude of each adjustment. Override capability is also available everywhere you see a green dot. If you disagree with any of our adjustments, you can change it. Our goal is to ensure you have all the information needed to make a prudent investment decision. How you use the information is up to you. Thanks for watching. If you have any questions, please leave a comment.