I’ve heard that Net Working Capital=Current Assets-Current Liabilities. I’ve also read in Schweser that it equals change in non-cash assets-change in non-debt liabilities. What is the definition of net working capital?
where have you read that in Schweser as far as I have seen it has always been Current Assets - Current Liabs.
- Working Capital = CA-CL 2. NWCInv = Change in Op assets - Change in Op Liabilities 3. NWCInv = Incr in Account Receivable + Incr in Inventory + Decr in Payables + Incr in Accr expense, taxes (not sure if i remember this correctly.)
He’s talking WCInv from equity investments non-cash assets - current liabilities excluding short-term debt