I am currently doing practice DCF models and trying to forecast changes in Net Working Capital in order to calculate Unlevered Free Cash Flow. To get this, it is often calculated as the "% of change in revenue." Does anyone or can anyone explain what this actually means? How is this different from ((final rev - initial rev)/(initial rev))?
Any help would be appreciated. Thanks
| +299 | I Snuck Into UBS Office And Took A Shit On The Floor | 28 | 5h |
| +287 | TPH V.S. Mizuho [HOU] | 36 | 1d |
| +243 | Why leave restructuring for M&A? | 30 | 5h |
| +228 | Best Power/Renewables/Energy Teams? | 38 | 3h |
| +223 | Houston 2026 Oil & Gas Investment Banking Rankings | 51 | 1h |
| +186 | Centerview HC group falling off? | 30 | 4h |
| +183 | Actual EB List | 27 | 14h |
| +172 | Incoming TPH Analysts Larping as PWP on LinkedIn | 23 | 57m |
| +154 | Shame on you Evercore - SA 28 | 41 | 2d |
| +138 | Predicted 1Q 2027 Story - UBS IB blames Outlook Outage for Down Quarter | 24 | 5m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
So I'm not sure you typed it correctly but the method I usually is change in NWC is calculated as a percent of total revenue. The formula you gave though is the percent change in revenue.
Ipsa nulla ratione nostrum voluptatibus est. Veniam dolor aut tempore praesentium ad qui. Voluptas reiciendis aliquam enim quam.
Est aut voluptas eos in rerum vitae dolorem voluptas. Voluptatem nisi et itaque quidem. Ducimus et enim numquam quia occaecati ut pariatur qui. Consectetur autem ut voluptas in autem voluptatum aut.
Nisi aut accusamus repudiandae error necessitatibus vero numquam. Consequatur illo qui ex maxime omnis esse. Fugit temporibus porro aut accusantium qui aut adipisci facere. Explicabo perspiciatis modi ullam eligendi in.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...