![]() ![]() Liquid assets are of capital importance (pun absolutely intended) in supporting this mission.Īnswering the question “what is net working capital?” is fairly straightforward. Whether you’re a small business owner or part of a large corporate finance team, your organization needs cash to cover its business needs and pursue its goals for growth, investment, and innovation. ![]() ![]() Using tools such as the net working capital formula ( NWC formula), financial professionals track their companies’ current assets and current liabilities to ensure obligations are met, with enough left over to cover both unexpected challenges and unlooked-for investment opportunities. Having a strong enough cash flow to cover your debts, keep your business humming, and invest in innovation requires careful financial management. Capital, like data, drives the day-to-day operations of businesses around the world. ![]()
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