net working capital


A measure of a company's operating liquidity expressed as current assets less current liabilities. Companies with current liabilities that exceed current asset are operating with a working capital deficiency which may prevent them from fulfilling short term obligations such as accounts payables, operational expenses and current interest payments. Analysts track net working capital over time in order to assess a company's operational efficiency. Also called working capital.

Use net working capital in a sentence

You need to make sure that you have enough of a net working capital to take on the plan before you start.

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Our net working capital was doing very well and I was impressed with our whole business and how it functioned.

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The net working capital as extraordinarily large as the team had concentrated on lowering the current liabilities of the company.

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