NWC ratio is NWC/Total Assets. Don't get confused between NWC and WC. They are the same. So, WC is an excess of current assets over current liabilities, NWC ratio helps us identify how much of NWC we have in the firm's total assets.
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Samay Meshram
Student
Powai, Mumbai MH
India
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Original Message:
Sent: 04-25-2021 11:37 PM
From: Nupur Mahajan
Subject: Net Working Capital Ratio
I am unable to crack the logic of the Net Working Capital Ratio. Can someone help me interpret it? What does a high NWC ratio means?
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Nupur Mahajan
<maskemail>nupur1188@...</maskemail>
Hartford CT United States
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