How to compute cash flows from net working capital changes |
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I first compute the level of net working capital as current assets less current liabilities. I then compute NWC cash flow as minus the change in NWC level from one year to the next.
== I'm a Finance Professor at the University of Tennessee in Knoxville. For more information about my teaching and research, please visit my website. https://sites.google.com/utk.edu/ekk/home |