Net Working Capital |
|
Simply put, Net Working Capital (NWC) is the difference between a company’s current assets (net of cash) and current liabilities (net of debt) on its balance sheet. It is a measure of a company’s liquidity and its ability to meet short-term obligations, as well as fund operations of the business. The ideal position is to have more current assets than current liabilities, and thus have a positive net working capital balance.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-net-working-capital/ |