Net working capital

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Net working capital is current assets minus current liabilities.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Net working capital. Current assets minus current liabilities.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Net working capital. Current assets minus current liabilities.

Related concepts

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