Net Working Capital (NWC)
Net Working Capital (NWC) is a financial metric that measures the amount of a company's current assets that exceed its current liabilities. It is calculated by subtracting current liabilities from current assets.
Net Working Capital = Current Assets – Current Liabilities
Current assets include cash, accounts receivable, inventory, and other assets that can be easily converted into cash within a year. Current liabilities, on the other hand, include accounts payable, accrued expenses, and other debts that are due within a year.
A positive net working capital indicates that a company has enough short-term assets to cover its short-term liabilities, while a negative net working capital suggests that a company may have difficulty meeting its short-term obligations.
Additional Details
Metric Name | Type | Default Period Type |
---|---|---|
nwc | fin_metric | FY |
Formatting Details
Data Format | Display Format | Unit |
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float | financial | usd |