Operating Net Working Capital is the lifeblood of a business. It measures the total value of a company’s short-term assets, such as cash and inventory, against its short-term liabilities. In essence, it tells us how much cash flow a business can generate to meet obligations, run operations, and remain profitable over time. The formula for calculating this figure is simple: Operating Net Working Capital = Current Assets – Current Liabilities. This will give you an accurate picture of your business’ financial standing at any given time. Knowing this information allows you to make informed decisions about investments or funding that will maximize profits and minimize risks.