Calculate Net Operating Working Capital (NOWC) is a measurement of all the current assets and current liabilities held by a business. It’s used to assess a company’s liquidity, meaning how easily it can access the funds necessary to pay off any debts or other obligations. NOWC helps investors determine whether a company has enough liquid assets to manage its day-to-day operations without financial strain. It’s also a helpful indicator for how healthy and efficient a business’s finances are overall. Simply put, the higher the NOWC, the better the chances are that a company will continue to remain profitable.