What is Net Working Capital?
This ratio is an indicator to the need of foreign sources of the company to cover short-term payables. Net Working Capital is calculated from the balance sheet statement of the financial report.
Calculation:
Net Working Capital = ST Trade Receivables + Inventory – ST Trade Payables
Net Working Capital – AVG
Net Working Capital – AVG ratio is the average of the Net Working Capital values of the selected quarter and the previous 4 quarters.
Calculation:
Net Working Capital – AVG = ST Trade Receivables – AVG + Inventory – AVG – ST Trade Payables – AVG