Current assets − current liabilities ($). The short-term operating cushion.
What this ratio is
Net working capital (Net Working Capital (NWC)): current assets − current liabilities ($), the short-term operating cushion.
How to read it
Positive = an operating cushion. Negative can be a business model that collects before it pays (retail and subscriptions).
Common mistake
An absolute dollar figure can't be compared across companies of different size. Compare it with the company's own revenue.
Where to see it on the platform
The fundamentals comparison page shows it for each company against the market median, under the "Liquidity metrics" family, with five years of history and a 12-month window.
Questions about net working capital
What does net working capital mean?
Current assets − current liabilities ($). The short-term operating cushion.
How does net working capital show up on the trading platform?
It appears as "cmp:nwc" (full term: Net Working Capital (NWC)), the name you see in the options chain or the order screen.
