What is operating working capital?
Understand the Problem
The question is asking for the definition and understanding of operating working capital, which generally refers to the funds available for the day-to-day operations of a business.
Answer
Operating current assets minus operating current liabilities.
Operating working capital is defined as operating current assets less operating current liabilities.
Answer for screen readers
Operating working capital is defined as operating current assets less operating current liabilities.
More Information
Operating working capital is a key financial metric that helps to assess a company's efficiency in managing its short-term assets and liabilities related to its core operations.
Sources
- Operating Working Capital (OWC) - Financial Edge Training - fe.training
- Operating Working Capital (OWC) | Formula + Calculator - wallstreetprep.com
- Operating Working Capital: What To Know - TGG Accounting - tgg-accounting.com
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