Hi Guys, I was wondering if the Net Working Capital is calculated correctly. It should be 5% of revenues - in 2022e we have like ~4mio revenues which schould give the something around ~200k Net Working Capital. However, the table comes up with much lower values. I am doing something wrong here? BR
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Zum Coach-Profil
The text states that the required NWC is 5% of revenues. Thus, as stated above, if the revenue is 4.284.000 € in 2022, the required NWC is 214.200 €. However, the companyalready had a required NWC of 71.400 € in 2021 (5% of 1.428.000 €).
The table highlightes the delta of these two numbers, thus: 214.200 (NWC required in 2022) - 71.400 (NWC which the company already had in 2021) = 142.800 €.
Hope this helps :)