Uploaded on Feb 12, 2024
One of the most important metrics in financial management, net working capital shows how liquid and well-run a company is. It is a measure of the resources available for regular business operations and is computed as the difference between a company's current assets and current liabilities. Smooth operations and financial flexibility are made possible by a business having adequate short-term assets to meet its immediate liabilities when it has a positive net working capital.
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