Days Working Capital (DWC) is a measure of a company’s liquidity. It looks at the number of days it takes for a company to convert its current assets into cash and cover its short-term obligations. In other words, it measures how quickly a business can generate enough revenue to pay off its current liabilities. Having an adequate DWC provides a business with a financial cushion, allowing it to invest in growth or take on new projects without compromising its ability to meet its daily financial commitments.
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