Change in Net Working Capital Calculator

Calculate Change in Net Working Capital (WC)



Formula

The formula to calculate the change in net working capital (WC) is:

\[ WC = CWC - PWC \]

Where:

Example

Let's say the current net working capital (\( CWC \)) is $50,000, and the previous net working capital (\( PWC \)) is $40,000. Using the formula:

\[ WC = 50000 - 40000 \]

We get:

\[ WC = 10000 \]

So, the change in net working capital (\( WC \)) is $10,000.

Additional Example

Suppose the current net working capital (\( CWC \)) is $30,000, and the previous net working capital (\( PWC \)) is $35,000. Using the formula:

\[ WC = 30000 - 35000 \]

We get:

\[ WC = -5000 \]

So, the change in net working capital (\( WC \)) is -$5,000, indicating a negative change.

What is Change in Net Working Capital?

The change in net working capital is simply the subtraction of the previous net working capital from the current. It is possible for this value to be negative, in which case there is a negative change in NWC.

Extended information about "Change-in-Net-Working-Capital-Calculator"

Change in Net Working Capital

Definition: Calculate the change in net working capital.

Formula: \( \Delta NWC = NWC_{end} - NWC_{beginning} \)

Example: \( \Delta NWC = 50000 - 30000 \)

Changes in Net Working Capital Formula

Definition: Calculate the changes in net working capital.

Formula: \( \Delta NWC = (CA_{end} - CL_{end}) - (CA_{beginning} - CL_{beginning}) \)

Example: \( \Delta NWC = (60000 - 20000) - (40000 - 15000) \)

Net Working Capital Calculation

Definition: Calculate the net working capital.

Formula: \( NWC = CA - CL \)

Example: \( NWC = 70000 - 25000 \)