net working capital


Also found in: Acronyms.

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 ?
In parallel with current assets remaining low, net working capital of the company had a negative course in the last three years.
TMG's net working capital reached EGP 9,469bn compared to EGP 9,549m, and its overall assets are EGP 60,44bn.
Foreign affiliates with positive net working capital positions were the most likely to increase their repatriations that year, suggesting that these affiliates used trade credit arrangements to reallocate capital prior to the tax holiday.
Net Working Capital Turnover: This ratio is used to evaluate the working capital efficiency.
Comment: The deal size excludes adjustments for net working capital acquired.
26% equity ownership, its preferred equity position, as well as the Fund's share of the venture's net working capital balance.
It does not include a net working capital of some USD24m, the buyer said.
0 million, subject to final net working capital and other purchase price adjustments.
With that in mind, I am pleased to report continued strong levels of cash flow, declining net working capital and reduced net debt.
The final price is subject to a net working capital adjustment as of 28 January 2013, when the deal was finalised TriMas said.
It is subject to post-closing adjustment for the difference between estimated and actual closing net working capital.
The final price to be paid will be based on the actual level of debt, net working capital and other liabilities on the date the tender offer is launched.