Editing Shoprite Holdings Limited (section)

=== Unlevered Free Cash Flows ===
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Some key assumptions were made for forecasting these line items from 2023 onwards. Revenue was grown at the 3-year historical average growth rate (8.90%). COGS (74.25%), EBITDA (8.56%), depreciation (3.05%) and capital expenditure (2.21%), were all forecasted at a 3-year average percentage of revenue. Tax was estimated as a percentage of EBIT and was thereafter forecasted at 28%, being the prevailing effective tax rate in South Africa. 
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With respect to calculating Net Working Capital (NWC), Accounts Receivables was forecasted at a 4-year average percentage of Days Sales Outstanding (9.3). Inventory was forecasted at a 4-year average percentage of Days Inventory Outstanding (57.9). Accounts Payable was forecasted at a 4-year average percentage of Days Payable Outstanding (58.5). Other Current Assets (1.47%) as well as Other Current Liabilities (4.52%) were all forecasted at a 4-year average percentage of revenue. Thereafter, Current Assets and Current Liabilities were determined for each year, with their difference representing the NWC for each year. These NWC figures were then used to determine the Change in NWC from year to year.