Net Working Capital NWC
Current assets minus current liabilities — the short-term cash cushion that funds day-to-day operations.
What it is
Net working capital is current assets minus current liabilities. It measures the money tied up in (or available for) running the business over the next year, covering items like inventory, receivables, payables, and short-term debt. A positive figure means short-term assets exceed short-term obligations.
Why it matters
Working capital shows whether a company can pay its near-term bills without raising new cash. Too little signals liquidity stress; too much can mean cash is trapped in slow-moving inventory or uncollected receivables instead of earning a return. Changes in working capital also directly affect cash flow.
How it's calculated
Add up current assets and subtract total current liabilities, both taken from the balance sheet. Some analysts exclude cash and short-term debt to isolate operating working capital.
How Quintarthai uses it
The Financials 10-yr tab on a company page breaks out current assets and current liabilities so you can track net working capital and its trend over time.