Projecting Net Working Capital For Free Cash Flow Calculation, DCF Model Insights

How do you project changes in net working capital (NWC) when building your DCF and calculating free cash flow? In this video I cover the different ratios that can be used to project NWC rather than using the simple percentage of sales method. Instead, for the most accurate results, the analyst should project the individual components of non-cash current assets and non-interest bearing current liabilities to better project FCF. In this video we cover; Days sales outstanding (DSO) Days inventory held (DIH) Inventory Turns Days payable outstanding (DPO) If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert...