أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
(1) Gross working capital include both of short term investments (current assets) and short term liabilities (current liabilities) .
(2) Net working capital is the difference between of the above mentioned and should be positive which means that the current ratio is mare than1 .
Gross Working Capital vs Net working Capital
•Working capital is the liquidity of a company and has two definitions namely gross working capital and net working capital.
•Gross working capital is the total of all current assets and does not hold much significance for the investors
•Net working capital is the excess of current assets over current liabilities of a company which is why it is an important indicator of company’s financial health.