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Net Operating Working Capital (NOWC) Calculator











Formula

The formulas used in the calculations are:

Current Operating Assets=Cash+Accounts Receivable+Inventories

Current Operating Liabilities=Accounts Payable+Accrued Expenses

Net Operating Working Capital (NOWC)=Current Operating AssetsCurrent Operating Liabilities

Description

This calculator computes the Net Operating Working Capital (NOWC) based on the input values of Cash, Accounts Receivable, Inventories, Accounts Payable, and Accrued Expenses. Net Operating Working Capital represents the difference between a company's current operating assets and current operating liabilities.

Example Calculation

Let's assume the following:

Calculate the Current Operating Assets:

Current Operating Assets=1,000+15,000+5,000=21,000

Calculate the Current Operating Liabilities:

Current Operating Liabilities=18,000+2,000=20,000

Calculate the Net Operating Working Capital (NOWC):

Net Operating Working Capital (NOWC)=21,00020,000=1,000

Therefore, the Net Operating Working Capital (NOWC) is $1,000.