Basically cash is excluded because cash doesn’t earn any returns. Marketable securities have a life on their own and earn a separate return. And debt is excluded since the discount rate that you will use in NPV already captures the cost of capital.
Good article.
If you exclude financial component from current assets you also have to exclude correspodent items from current liability position and that is current debt (financial liablities).
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.