Net Operating Working Capital (NOWC) is a business metric that looks at the amount of money left over after paying all of the company’s current liabilities. It’s important to understand this number because it can tell you a lot about how well your company is managing its finances. NOWC should be positive, as it means the company has sufficient resources to pay off any short-term obligations. A negative NOWC indicates that the company might not have enough funds to cover its debts and could face financial difficulty in the future. NOWC is an essential indicator of the financial health and performance of a business.