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How to Calculate Net Working Capital: Definition & Formula

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question 1 of 3

What is a current asset?

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1. What is the formula for net working capital?

2. If a business has $100,000 of net working capital, what does this mean?

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About This Quiz & Worksheet

This quiz and worksheet will test your competencies of a company's net working capital. The quiz covers topics like current assets and a negative net working capital.

Quiz & Worksheet Goals

Use these assessment tools to:

  • Determine a firm's net working capital
  • Identify current liabilities
  • Analysis of working capital

Skills Practiced

This worksheet and quiz let you practice the following skills:

  • Critical thinking - apply relevant concepts to examine information about the formula for net working capital and understand what that means to a company
  • Defining key concepts - ensure that you can accurately define main phrases, such as current liabilities and current assets
  • Information recall - access the knowledge you've gained regarding liquidity

Additional Learning

To learn more review the lesson called How to Calculate Net Working Capital: Definition and Formula. The lesson covers the following objectives:

  • Name other variables that investors may look at
  • Identify inefficiencies
  • Identify the time frame current assets and current liabilities fall within
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