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Seventh , the increase/decrease in working capital and working capital were calculate
d as follows .
Working capital refers to the funds needed for business activities and refers to net wo
rking capital .
It refers to the portion of current assets excluding current liabilities In this analysis, th

e 2019 Corporate Management Analyst 16)
The average inventory turnover ratio (17.21) and accounts receivable of the mail ord
er business
The increase/decrease in working capital was calculated by multiplying the increase/d
ecrease in sales by the working capital requirement rate of 5.34% calculated using the
accounts receivable turnover ratio (11.27 ) and accounts payable turnover ratio
(10.70) .

< Working capital requirement rate and working capital increase/decrease amount Calculation formula >

Working capital requirement = 1/ Inventory turnover rate + 1/ Accounts receivable turno
ver rate – 1/ Accounts payable turnover rate Working capital increase/decrease = increas
e/decrease in sales × Working capital requirement

The increase or decrease in working capital can be calculated by multiplying the incre
ase or decrease in sales by the working capital requirement rate . Working capital can
be calculated as the accumulated amount of working capital increase or decrease .
At this time , the annual working capital and the increase or decrease in working capit
al can be calculated as follows .

< Table 2-3> Numerical domain sales forecasts by ye
ar ( Unit : billion won , %)
2nd year 3rd year 4th year Year 6th year average annual
division
( 2022 ) ( 2023 ) ( 2024 ) 5 ( 2025 ) ( 2026 ) growth rate
take 5,291 40,857 100,270 160,196 242,540 160.2%
increase/decrea 5,291 35,566 59,413 59,926 82,344 98.6%
se in sales
Working capital 0.0543 0.0543 0.0543 0.0543 0.0543
requirement
working capital 283 1,899 3,173 3,200 4,397 98.6%
Working capital
increase or dec 283 1,616 1,274 27 1,197 76.7%
rease
Therefore, Giga Korea Co., Ltd. The amount of working capital increase or decreas
e is It is expected to grow at an average annual rate of 43.5% from KRW 28.3 billio
n in 2022 to KRW 119.7 billion in 2026 , five years later .

16) Bank of Korea (December 2020), 「 2019 Corporate Management Analysis」
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