Could someone quickly explain the difference among working capital, net operating assets, and monetary assets? Thank you.
WC = Change in current assets - Change in curent Liabilities = (change in current assets - cash and equiv) - (current liabilities - notes payable - current portion of LT debt) NOA = Net Assets - Net Liabilities = (Total Assets - cahs and equiv) - (Total liab - Total Debt) Monetary assets are cash and receivables, and liabilities include all debt and AP
Thank you
Working capital is current assets - current liabilities. Changes in working capital are used in calculating FCF, although we actually use changes in net working capital (ex. cash and short-term debt/notes payable).
Monetary assets are money or something that can be converted to money 
WCInv and NOA are somewhat related. I remember them like this: in calculation of WCInv everything is related to CURRENT assets/liabilities/debt WCInv = change in [(Current Assets - cash&eqv) - (Current Liabilities - Current Debt)] notes payable is short term debt so it is current, current portion of long term debt is current as well. For NOA everything is related to TOTAL assets/liabilities/debt NOA = (Total Assets - cash&eqv) - ( Total Liabilities - Total Debt)