oboloo Glossary

Calculate Net Working Capital

oboloo Glossary

Calculate Net Working Capital

Calculated Net Working Capital (NWC) is a measure of a company’s financial health. It is used as an indicator of the amount of liquidity available to a business and is calculated by subtracting short-term liabilities from current assets. By tracking NWC – both on a regular basis and over time – business owners can gain valuable insights into their cash flow and better understand their financial position. Knowing your NWC can help you make smarter decisions about investments, purchases, and other business activities, so it pays to stay informed and up-to-date with your finance metrics!