Change in Net Working Capital Calculator

Formula

The formula to calculate the change in net working capital (WC) is:

\[ WC = CWC - PWC \]

Where:

$ WC $ is the change in working capital.
$ CWC $ is the current net working capital.
$ PWC $ is the previous net working capital.

Example

Let's say the current net working capital ($ CWC $) is $50,000, and the previous net working capital ($ PWC $) is $40,000. Using the formula:

\[ WC = 50000 - 40000 \]

We get:

\[ WC = 10000 \]

So, the change in net working capital ($ WC $) is $10,000.

Additional Example

Suppose the current net working capital ($ CWC $) is $30,000, and the previous net working capital ($ PWC $) is $35,000. Using the formula:

\[ WC = 30000 - 35000 \]

We get:

\[ WC = -5000 \]

So, the change in net working capital ($ WC $) is -$5,000, indicating a negative change.

What is Change in Net Working Capital?

The change in net working capital is simply the subtraction of the previous net working capital from the current. It is possible for this value to be negative, in which case there is a negative change in NWC.