Debt-free Net Working Capital to Revenue
The "Debt-free Net Working Capital to Revenue" is a financial metric that measures a company's ability to cover short-term obligations without relying on debt. It is calculated by subtracting a company's current liabilities (excluding any short-term borrowings) from its current assets and then dividing the result by the annual revenue generated by the company. This metric provides an indication of a company's liquidity position and can help investors determine whether a company has enough cash and liquid assets to meet its short-term obligations. A high Debt-free Net Working Capital to Revenue ratio typically suggests that a company has a strong liquidity position, whereas a low ratio indicates that a company may struggle to cover its current obligations.
Additional Details
| Metric Name |
Type |
Default Period Type |
| df_nwc_to_rev |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
perc |
percentage |