While calculating Net Working Capital, do we need to include Total Net Worth, Depreciation etc. ?
If anything need to include for calculation other than Current Assets and Current Liabilities kindly share here.
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Calculation of Net Working Capital
Replies (7)
Quick Summary
No , Current Assets less Current Liability only for Calculation of net working Capital.
There is a net working capital calculator online. Try it and it's useful because it gives many simulations.ie when there can be negative and positive working capital.
As per recent ammendment after companies act 2013.
Current assets are seperately classified.
Current liabilities are seperately classified.
Current assets are seperately classified.
Current liabilities are seperately classified.
That is because of indas advent. I hope as change to indas one day soon.
That is because of indas advent. I hope as change to indas one day soon.
Irrelevant seems
There is nothing wrong. Indas is also a part harmonised accounting. It doesn't mean India loves other country's more. Everyone loves their own country. Think of it as a positive change we adopted and different technology. We adopted lots of technology and one day, India will also manufacture some new technology where others will use. That's what evolution is. I've gone through first financial statements and it all looked funny.
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