What Exactly Is Net Working Capital? (NWC)
I am sure you are wondering what NWC is and in this guide, I will tell you all about it. Working capital, is also known as the net working capital and is the difference between a companies assets like cash, accounts receivable and inventory of all the raw materials and finished goods, including its current liabilities. By current liabilities, I mean accounts table. The net operating working capital happens to be a measure of the companies liquidity, and it also refers to the difference between the operating current assets and also the operating liabilities. In a lot of cases, these calculations are very similar and are all derived from the companies cash plus accounts receivable, inventory is and less accrued expenses. Simply put, the working capital happens to be a…