net working capital


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Net working capital

Net Working Capital

Cash and short-term assets expected to be converted to cash within a year less short-term liabilities. Businesses use net working capital to measure cash flow and the ability to service debts. A positive net working capital indicates that the firm has money in order to maintain or expand its operations. Net working capital tends not to add much to the business' assets, but helps keep it running on a day-to-day basis.

net working capital

References in periodicals archive ?
Adjusted funds flow, operating netback, operating income,net operating expenses and net working capital (deficiency) are not recognized measures under IFRS.
In parallel with current assets remaining low, net working capital of the company had a negative course in the last three years.
MNH's net working capital increased to EGP 1,02bn from its previous posting of EGP 785,81m; overall assets were reported at EGP 2,518bn.
A price of $17.5 million plus net working capital would be paid in cash at closing and $4.5 million would be paid by Genesee, taking back a three year note from the purchaser, bearing interest at 12% per year.
Stocks occasionally trade below adjusted net working capital per share (current assets less current liabilities and long-term debt divided by shares outstanding).
Our results reflect an anticipated increase in net working capital required to support our topline growth expectations for 2019, which includes over $1 billion in new product launches, as previously communicated.
Focus will also be placed on the Groups value propositions around the rotating shaft and activities under implementation to reduce net working capital. The Groups investments in manufacturing and product development initiatives will also be presented, as well as achievements and focus areas within the Automotive business.
The firm posted net working capital at USD18,414,000 in December 31, 2017, against CAD23,443,000 at December 31, 2016.
After giving effect to cash and net working capital purchase price adjustments, Endo received approximately USD100m in cash and may receive up to another USD11m in contingent consideration.
Golden Gate Capital to acquire Bob Evans Restaurants for USD 565m plus assumption of certain net working capital liabilities.
The accounts receivable turnover (days), inventory turnover (days), net working capital turnover rate, and return on assets indicators were used to measure the effectiveness of the working capital management.