Difference between revisions of "Working Capital"
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| − | Working Capital | + | The working capital of a company is the difference between the companies short term assets ([[Accounts Receivable|Accounts Receivable]] and liabilities (Inventory of raw materials): |
| + | |||
| + | {{{ | ||
| + | Working Capital = Current Assets | ||
| + | Net Working Capital = Current Assets − Current Liabilities | ||
| + | Equity Working Capital = Current Assets − Current Liabilities − Long-term Debt | ||
| + | }}} | ||
[[Category:finance]] | [[Category:finance]] | ||
Latest revision as of 19:26, 27 August 2020
The working capital of a company is the difference between the companies short term assets (Accounts Receivable and liabilities (Inventory of raw materials):
{{{ Working Capital = Current Assets Net Working Capital = Current Assets − Current Liabilities Equity Working Capital = Current Assets − Current Liabilities − Long-term Debt }}}