Financial Statements
Net Working Capital
Definition
What is Net Working Capital?
Current assetsAssets expected to be realised, sold, or used within the normal operating cycle or about one year. minus current liabilitiesObligations expected to be settled within the normal operating cycle or about one year., or a narrower operating version where stated.
Example in practice
How This Looks in Practice
₦1 billion current assets less ₦700 million current liabilities gives ₦300 million.
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Related Terms
Financial Statements
Revenue
Income generated from selling goods or services before expenses are deducted.
Financial StatementsSales Growth
The percentage increase or decrease in revenue over a period.
Financial StatementsCost of Goods Sold
Direct costs attributable to goods or services sold during a period.
Financial RatiosGross Margin
Gross profit expressed as a percentage of revenue.