In economics, for net working capital company, means the difference between the various activities that determine the assets and liabilities of the capital, calculated over a period of one year, 12 months of profits and debts. It determines the balance and the balance sheet of the company in a short period. To calculate this value, we must consider different factors related to the company. Let’s see how to calculate the net working capital and what are the dynamics.

We must consider all financial assets and liabilities related to the activity involving the storage, finished goods, finished goods and raw materials not used, any accounts receivable or banks that finance the company, or with the involuntary itself, collaboration and funding. You will need to consider all the advances relating to taxes and other charges, including suppliers, any amounts due to the same. Will comprise all operating expenses related to salaries, excluding severance (liquidation), which occur in tremendous shape and not cyclical. Finally, all the debts for taxes, taxes to pay, such as Social Security and VAT in the first place, it weighs in proportion to the activity itself and its conduct, also because of the amount of purchases, sales and scope (area).


In summary, the items that make one balance sheet are collected and grouped assets and liabilities of a financial nature, contingent upon the applicant and cyclical company, whether of not accounting, but rather monetary union. This will include the cash flows, operating elements and elements related financial banks (invoices, payables, cash, etc.). It causes a change in working capital defined, in other terminology, “Working Capital”. The variation of the latter tends to give rise to absorption and release of company resources in financial terms. The calculation of the liabilities include all debts of the company, while “activity” refers to all processes that are related to production activities (cash, stock, liquidity , possible escorts and production).

Analyzing the dynamics of working capital ( Working Capital ), considering all the items described, which combine to form the corporate liabilities and assets, you will be able to calculate and check for any imbalances between long-and short-term loans but within 12 months, debt present and possible liquidity contingent and uncertain. Summing up and wanting to give a mathematical formula we say that the calculation should be done by adding: short-term debt, any outstanding balances and liquidity, all we’re going to subtract the short-term debt, together with borrowings. The net working capital is a variable that indicates the “state of health” and liquidity of a company and its ability to cope with bonds that require investments related to the company management and the production cycle.