Entity: NWC
NWC, also known as Net Working Capital, refers to the amount of money a company has available to operate after deducting its current liabilities from its current assets. It is a measure of a company's liquidity and ability to meet short-term obligations.
NWC
Etymology
The term NWC is an abbreviation for Net Working Capital.
Definition
NWC, also known as Net Working Capital, refers to the amount of money a company has available to operate after deducting its current liabilities from its current assets. It is a measure of a company's liquidity and ability to meet short-term obligations.
Historical Context
NWC has been a key financial metric used by businesses to assess their financial health and operational efficiency. It helps in determining the company's ability to cover its short-term liabilities with its short-term assets.
Cultural Significance
In the business world, NWC plays a crucial role in evaluating a company's financial stability and operational efficiency. It is often used by investors, creditors, and analysts to assess the company's financial health and risk profile.
Related Concepts
- Working Capital
- Liquidity
- Financial Health
See Also
A financial term referring to the net amount of a company's current assets minus its current liabilities, indicating its liquidity and ability to meet short-term obligations.