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Net working capital

Learners pursuing their career in finance sector often have to deal with Net Working Capital but I they don’t have aclear idea about the topic then it would have difficult for them to get their purpose solved. So we have decided to deliver the best net working capital homework help to all the clients reaching us for help.

Why it is important?

Net Working Capital is actually a financial method through which the efficiency and short-term financial health of an organizationis measured. It is also the cumulative amount of all the current liabilities and current assets.

Uses of Net Working Capital

  • Net Working Capital is actually used to calculate the short-term liquidity of the company
  • It is also used to get a general impression of the ability of company management in order toutilize assets in effective and efficient manner.

Learners can get even better and detailed description related to this topic with proper illustrations and industry examples through our net working capital assignment help.

How it canbe calculated?

Net Working Capital is associated with the given organisation’s different data and figures, so in order to calculate this learner have to follow a formula and it is:

Net Working Capital = Current Liabilities – Current Assets

Or it can also be calculated through

Marketable investments + Cash and cash equivalents +Inventory +Trade Accounts Receivable –Trade accounts payable= Net Working Capital

If the result of net working capital is positive, then it shows that the amounts of short-term funds available from current assets are excess than the sufficientto pay for current liabilities. But if the value is negative then it shows that the company doesn’t have theadequate amount or capital to pay for their current liabilities. This may also cause the threat of bankruptcy.

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