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      • Working capital, also called net working capital (NWC), is the difference between a company’s current assets and current liabilities. It measures a company’s liquidity and short-term financial health, indicating the ability to fund operations and respond to financial stress or opportunities.
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  1. Jun 27, 2024 · Working capital, also called net working capital (NWC), is the difference between a company’s current assets and current liabilities. It measures a company’s liquidity and short-term financial...

    • Jason Fernando
    • 2 min
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  3. Aug 25, 2021 · Working capital is the day-to-day cash that a company needs to run business operations. It is the difference between a company's current assets and its current...

    • Ben Mcclure
  4. Dec 27, 2022 · Working capital = current assets - current liabilities. Working capital is an important number when assessing a company's financial health, as a positive number is a good sign while a negative number can be a sign of a failing business. Of note, working capital is also known as net working capital.

  5. May 12, 2024 · Working capital is the difference between a company's current assets and current liabilities. Working capital is used to purchase inventory, pay short-term...

    • Claire Boyte-White
  6. Nov 30, 2020 · Working capital represents a companys overall liquidity and ability to meet short-term demands. However, net working capital is determined by removing the cash from the asset category and short-term debt from the liability side of the equation.

  7. This chapter is about a specific type of capital— working capital —that is just as important as long-term capital. Working capital describes the resources that are needed to meet the daily, weekly, and monthly operating cash flow needs.

  8. Working capital is the difference between current assets and current liabilities. It is not to be confused with trade working capital (the latter excludes cash). The basic calculation of working capital is based on the entity's gross current assets.

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