CMA Study Group

Net Working Capital Ratio

  • 1.  Net Working Capital Ratio

    Posted 11 days ago

    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
    nupur1188@...
    Hartford CT United States
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  • 2.  RE: Net Working Capital Ratio

    Posted 11 days ago
    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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