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
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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.
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