Working Capital Calculation Formula
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Working Capital Calculation Formula
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Working Capital Formula How To Calculate Working Capital
Working capital is calculated by subtracting current liabilities from current assets as listed on the company s balance sheet Current assets include cash accounts receivable and inventory Current liabilities include accounts payable taxes wages and interest owed Key Takeaways Working capital is calculated simply by subtracting current liabilities from current assets Calculating the metric known as the current ratio can also be useful The current ratio also known

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