Net Working Capital NWC Formula + Calculator
To reduce short-term debts, a company can avoid unnecessary debt, secure favorable credit terms, and manage spending efficiently. A company’s balance sheet contains all working capital components, though it may not need all the elements discussed below. For example, a service company that doesn’t carry inventory will simply not factor inventory into its working capital calculation. To calculate working capital, subtract a company’s current liabilities from its current assets. Both figures can be found in public companies’ publicly disclosed financial statements, though this information may not be readily available for…read more