Question

explain net working capital​

Answer 1

Answer:

It is the excess of current assets over current liabilities i.e. Current Assets-Current Liabilities. Current Assets are the assets which can be converted into cash within one year in the ordinary course of business. Current Liabilities are the claims of the outsiders.

Answer 2

Answer:

Working capital, also known as net working capital (NWC), is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills), and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.