net working capital
Also found in: Acronyms.
Net working capital
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
net working capital
See working capital.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.