Working Capital ?

As i understanded Working Capital Investment for FCFF or FCFE is

Change from period to period WC = (C.A-Cash) - (C.L.-Notes Payable or ST Debt)

I read somewhere that you dont deduct cash, is that correct or my formula is right?

i am pretty sure your forumla up there is right. and btw, you DO deduct cash.

I dont quite understand your questions, but the change in Working capital comes as a result in addidions and subtractions of cash brought about by changes in working capital items( currents liabilities and current assets excluding cash and cash equivalents). The normal conventsion is, anything which causes cash to increase, add it(ie increase in liabilites and decreases in assets) and anything that causes cash to reduce, subtract it.

Remember that FCFF and FCFE are the measure of CASH. Again, we are talking only about cash. When you calculate the two measures, you should net all CASH inflows and outflows to come up with a result: are you a cash consumer or provider?

Working capital is the difference between current assets and current liabilities. When calculating WCInv, current assets are the consumers of cash and current liabilities are the providers.Thus, you calculate investment in Working Capital as “Change in the Current Assets - Change in the Current Liabilities” without including cash items like Cash and Equivalents and Short Term borrowing. The result is the net change in cash.

Hope this helps.