Category: Working Capital

Let us go ahead and talk about the working capital of a company in this article. I will be talking about the working capital of Coca-Cola. For the fiscal year ending of December 31 in 2017, the Coca-Cola company had current assets which were valued at $36.5 billion. They included cash and cash equivalents, marketable securities, short-term investments, all accounts receivable, all prepaid expenses and all inventory is, and they even included assets which are held for sale. Coca-Cola also registered all of the current liabilities for the fiscal year ending of December 2017, and it equated to $27.2 billion. The liabilities of the company consisted of the accrued expenses, all of the accounts payable, all loans and notes payable, current maturities of any long-term debts, accrued income taxes and…

Owning a company will introduce you to many different facets of the world that you haven’t witnessed. As you manage your business, several such aspects make up for the complete picture of your success. Net working capital would be one such term that you must have come across that has an integral part in your business. As you sit through the accounting of your company's monetary transactions and deals, you will surely have to calculate the net working capital to determine the current state of the business. In the simplest terms, Net Working Capital (NWC) can be defined as the difference between the current assets and current liabilities of a company. It is considered as the record of the company’s liquidity, fund operations, and the ability of the company to…