The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments..
Related posts to net working capital equation
Net working capital is the difference between your current assets and current liabilities. Read our article to learn more about how to calculate NWC..
Based on this information, the net working capital requirement is 13.9 of revenue. Although this figure will change overtime, providing the business is relatively .
The working capital turnover ratio is also referred to as net sales to working capital. It indicates a company's effectiveness in using its working capital. The .
What is working capital? Working capital is the amount of a company's current assets minus the amount of its current liabilities. For example, if a company's balance .