Top things you need to know about Net Working capital
NWC is the short form for Net Working Capital. It is the amount required to meet all the short term expenses of the company, which includes the short term debts, everyday expenses, inventory and many more. It can also be termed as the difference between the current assets and the current liabilities, reflected in a balance sheet. Net Working capital is crucial for a company, to ensure that the company runs smoothly without any hurdles, for the coming year and meet all its financial obligations. There is no hard and fast rule as to how much money a company should hold in stock to run smoothly. It depends on the liabilities of the company. For example, if you consider the case of a retail business, it is usually high during…