What is the reasoning behind Net Working Capital excluding cash and short-term debt from Current assets and Current Liabilities respectively?
Read this and you’ll find answer…(1st search in Google)
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/noncashwc.htm
Basically cash is excluded because cash doesn’t earn any returns. Marketable securities have a life on their own and earn a separate return. And debt is excluded since the discount rate that you will use in NPV already captures the cost of capital.
Good article.
If you exclude financial component from current assets you also have to exclude correspodent items from current liability position and that is current debt (financial liablities).