Net Working Capital Template
Net Working Capital Template
This net working capital template allows you to compute the net working capital using the formula:
Net Working Capital = Current Assets (less cash) – Current Liabilities (less debt)
Below is a preview of the net working capital template:
Download the Free Net Working Capital Template
Net Working Capital (NWC) is the difference between a company’s current assets (net of cash) and current liabilities (net of debt) on its balance sheet. It is the measure of a company’s liquidity and its ability to meet short-term obligations, as well as fund operations of the business. The ideal position is to have more current assets than current liabilities, and thus have a positive net working capital balance.
There are a few different methods for calculating net working capital, depending on what an analyst wants to include or exclude from the value.
Formula:
Net Working Capital = Current Assets (less cash) – Current Liabilities (less debt)
or
NWC = Accounts Receivable + Inventory – Accounts Payable
The first formula above is the broadest (as it includes all accounts) and the second formula is the most narrow (as it only includes three accounts).
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.
Analyst Certification FMVA® Program
Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
Additional Questions & Answers
CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover:
- What is Financial Modeling?
- How Do You Build a DCF Model?
- What is Sensitivity Analysis?
- How Do You Value a Business?
Excel Tutorial
To master the art of Excel, check out CFI’s Excel Crash Course, which teaches you how to become an Excel power user. Learn the most important formulas, functions, and shortcuts to become confident in your financial analysis.
Launch CFI’s Excel Crash Course now to take your career to the next level and move up the ladder!
Accounting Crash Courses
To master the art of Excel, check out CFI’s Excel Crash Course, which teaches you how to become an Excel power user. Learn the most important formulas, functions, and shortcuts to become confident in your financial analysis.
Boost your confidence and master accounting skills effortlessly with CFI’s expert-led courses! Choose CFI for unparalleled industry expertise and hands-on learning that prepares you for real-world success.
