Net Working Capital Requirement is a measure of a business’s financial health and stability. It’s calculated by subtracting the current liabilities from the current assets to determine how much money is needed outside of normal operations to cover short-term debts and requirements. A company with a negative Net Working Capital Requirement may need to take on additional loans or outside funding to keep up with its expenses. A healthy company will typically have a positive Net Working Capital Requirement, which indicates that it has enough cash on hand to cover its liabilities and debt obligations.