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Working capital Formula

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Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Check FAQs

NWC = CA - CL

NWC - Working Capital?CA - Current Assets?CL - Current Liabilities?

Working capital Example

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With units

Only example

Here is how the Working capital equation looks like with Values.

Here is how the Working capital equation looks like with Units.

Here is how the Working capital equation looks like.

76500 = 79500 - 3000

76500 = 79500 - 3000

76500 = 79500 - 3000

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Working capital Solution

Follow our step by step solution on how to calculate Working capital?

FIRST Step Consider the formula

NWC = CA - CL

Next Step Substitute values of Variables

∴

NWC = 79500 - 3000

Next Step Prepare to Evaluate

∴

NWC = 79500 - 3000

LAST Step Evaluate

∴

NWC = 76500

Working capital Formula Elements

Variables

Working Capital

Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities.

Symbol: NWC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Working Capital

Current Assets

Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.

Symbol: CA

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Current Assets

Current Liabilities

Current Liabilities are the company debts or obligations that are due within one year.

Symbol: CL

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Current Liabilities

Other formulas in Solvency and Stock Ratio category

Go Debt to worth ratio

DW = \frac{TL}{NW}

Go Accounts Payable Turnover Ratio

APTR = \frac{TSP}{\frac{BAP + EAP}{2}}

Go Earnings per share

EPS = \frac{E}{TSO}

Go Price-Earnings Ratio

PE = \frac{P}{EPS}

How to Evaluate Working capital?

Working capital evaluator uses Working Capital = Current Assets-Current Liabilities to evaluate the Working Capital, Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Working Capital is denoted by NWC symbol.

How to evaluate Working capital using this online evaluator? To use this online evaluator for Working capital, enter Current Assets (CA) & Current Liabilities (CL) and hit the calculate button.

FAQs on Working capital

What is the formula to find Working capital?

The formula of Working capital is expressed as Working Capital = Current Assets-Current Liabilities. Here is an example- 76500 = 79500-3000.

How to calculate Working capital?

With Current Assets (CA) & Current Liabilities (CL) we can find Working capital using the formula - Working Capital = Current Assets-Current Liabilities.

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Working capital Formula

Working capital Example

Working capital Solution

Working capital Formula Elements

Other formulas in Solvency and Stock Ratio category

How to Evaluate Working capital?

FAQs on Working capital

Variable Name