Question

To financial analysts, "net working capital" means the same thing as
(A) Total assets
(B) Fixed assets
(C) Current assets
(D) Current assets minus current liabilities.​

Answer 1

Answer:

To financial analysts, "net working capital" means the difference between current assets and current liabilities.

Option 'D' is correct.

Explanation:

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

#SPJ2

Answer 2

The correct Option is,  (D) Current assets minus current liabilities.​

• To financial analysts, "net working capital" means the difference between current assets and current liabilities.
• Working capital, also known as net working capital (NWC), is the difference between a company’s current assets such as cash, accounts receivable (or) customers unpaid bills, and inventories of raw materials and finished goods and its current liabilities, such as accounts payable and debts.

Do financial Analysis net working capital means the same thing as?

• Financial analysts, working capital means the same thing as current assets minus current Liabilities.

What is net working capital in finance?

• Working capital, also called net working capital (NWC), represents the difference between a company's current assets and current liabilities.
• NWC is a measure of a company's liquidity and short-term financial health.
• A company has negative NWC if its ratio of current assets to liabilities is less than one.

What is net working capital to total assets?

• The net working capital to total assets ratio is expressed as a percentage of total assets.
• The calculation is current asset minus current liabilities divided by total assets.
• This number is then multiplied by 100 in order to arrive at the final ratio.

#SPJ2