Moody's Flashcards
Why Moodys
In terms of Why Moodys specifically, when I was researching the company I stumbled across the company’s YouTube channel, and found a video of a managing director talking about the company. She spoke about how the company culture revolves around teamwork and collaboration, and that at Moodys you have ability and power to make a difference.
I really working on team projects, and I believe working on things that are so essential to the modern economy such as Credit Ratings would be a fantastic opportunity to have a positive impact and make the world a better place.
In addition, throughout my degree I have enjoyed working on technical projects, and I would like to continue doing this in my career. I believe Moody’s will give me a fantastic opportunity to develop my technical and analytical skills early on in my career, which I think is quite unique for an entry level role.
Why CRA
So I would say My reasons for applying to work within CRA are similar to why I am applying to Moodys:
I really working on team projects, and I believe working on things that are so essential to the modern economy such as Credit Ratings would be a fantastic opportunity to have a positive impact and make the world a better place.
In addition, throughout my degree I have enjoyed working on technical projects, and I would like to continue doing this in my career. I believe Moody’s will give me a fantastic opportunity to develop my technical and analytical skills early on in my career, which I think is quite unique for an entry level role.
Time you have shown teamwork
A time I have shown teamwork was at the start of my degree at Warwick Business School Ethics presentation for Masters degree. Our group had to make a presentation on whether payment for order flow is ethical, and then have a question-and-answer session.
We initially had a conversation of how we will allocate the work, and the other group members expressed that they would feel more comfortable doing the actual presentation, rather than focusing on the Q&A section. I wanted to make sure my group felt comfortable when presenting, so I agreed to this format of the presentation. I also took it upon myself to organise regular team meetings, so we could keep each other motivated.
Our presentation went really well, and we came out with a result of 80%, which was the joint highest mark awarded to any of the 30 groups presenting.
Walk me through your resume
Walk me through your resume
I am originally from Worcester UK and am currently studying for a masters in finance from Warwick business school.
I would say my interest in finance stemmed from an arguably unrelated experience during my younger years, where I built a business around buying and selling clothes. From here, I did an internship with a small wealth management firm, where I was introduced to the basics of portfolio management, and have also done some work expereicne at a small accountancy firm and worked part time at Marstons
Once at university, I joined various finance related societies and had opportunity to give various presentations on finance topics. I really enjoyed these experiences, and so decided , to set up a trading and investing community, where others interested in the world of investing could learn and network with others interested in the industry. With some members of my community I have explored building an algorithmic trading portfolio which has been a really fun process. I’d say that All of these experiences have led to now where I am now wanting to work in a role where I can further develop my technical and analytical abilities as well as working in something where I can have a real impact on the world.
EV -> EQ
EV - Debt + Cash
EQ -> EV
EQ + debt - Cash
Depreciation on each three financial statements
Subtracted early in income sheet, so lowers tax paid. Added back in cash flow statement so increases free cash flow. Cash is up on the assets side as a result of increased FCF, but this is counteracted by higher depreciation so overall asset side is down.RHS (ie Liabilities and equity) are down because of lower net income.
Go from revenue to FCF
Start revenues - costs to get gross profit
Gross profit minus depreciation minus other operating expenses to get EBIT
After EBIT subtract taxes to get UNI
UNI + depreciation as is a non-cash expense, - increases in NWC - CapEX
DCF
Start with FCF this year. Estimate a grow rate for next few years, and then a growth rate a little lower after that. Discount all of these to find PV of future cash flows . Work out terminal value from last FCF value, and then sum to get enterprise value. Then deduct debt and add cash to get equity value, and then divide by shares outstanding to get share price.
News story
News story that interested me recently is probably the wide ranging impacts that rising interest rates are now having. Of course BoE raised rates to 0.25%, and FED are likely to raise rates early in 2022.
We are now seeing impact of this on valuation of tech companies, as nasdaq has fallen considerably, and it will be interesting to see how this plays out in terms of company valuations but also how it affects other factors such as economic growth following covid. In particular, it also could be interesting to see how financial institutions cope during this time, seeing as their profit margins usually rise as interest rates rise.
Will be interesting to see how this scenario plays out.
