Financial Education

Net Working Capital (NWC)

Current Assets − Current Liabilities (often excluding cash and debt)

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Net Working Capital (NWC)

Current Assets − Current Liabilities (often excluding cash and debt)

Definition

NWC measures operational liquidity. Formula: Current Assets - Current Liabilities (excluding cash/debt). It represents capital invested in day-to-day operations. Increasing NWC may signal growth or inefficiency.

Related Topics

#working capital #operational liquidity #current assets #current liabilities

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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