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working capital
(redirected from Net current assets)

   Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia 0.01 sec.
working capital,
n a firm's investment in short-term assets or cash, short-term securities, accounts receivable, and inventories. Gross working capital is defined as current assets minus current liabilities. If the term
working capital is used without further qualification, it generally refers to gross working capital.

working capital
see working capital.


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Look at net current assets Current assets are likely to be owned for less than a year or realisable in less than a year, and further details are usually given in the notes.
These are the forecast inflation rates, the real interest and growth rates, the ratio of operating profit to sales, the ratio of sales to fixed and net current assets, the maximum permissible gearing (expressed as the ratio of borrowings to operating assets) and the corporation tax rates.
The courts have spent considerable time attempting to measure excess net current assets to determine whether dividends should have been paid to shareholders.
 
 
 
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