![]() Current Assets: Resources that can be readily liquidated and converted into cash (inflow) or are expected to be used within the year – e.g.Current Liabilities: Obligations that a company is required to pay off (outflow) within the year – e.g.To review some basic accounting terminology: The net working capital metric is a measure of liquidity that helps determine whether a company can pay off its current liabilities with its current assets on hand.Īs a general rule, the more current assets a company has on its balance sheet in relation to its current liabilities, the lower its liquidity risk (and the better off it’ll be). How to Calculate Net Working Capital (NWC) Change in Net Working Capital (NWC) Calculation Example. ![]() Change in NWC Calculator – Excel Model Template. ![]() Apple Cash Flow Statement (CFS) Example.Increase / (Decrease) in Net Working Capital Example.Change in Net Working Capital (NWC) Formula. ![]()
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