{"id":51025,"date":"2022-12-28T13:02:44","date_gmt":"2022-12-28T05:02:44","guid":{"rendered":"https:\/\/www.crazydomains.com\/learn\/?p=51025"},"modified":"2023-01-03T08:36:56","modified_gmt":"2023-01-03T00:36:56","slug":"net-working-capital-why-it-matters","status":"publish","type":"post","link":"https:\/\/www.crazydomains.com\/learn\/net-working-capital-why-it-matters\/","title":{"rendered":"What is Net Working Capital and Why It Matters to Your Business\u00a0"},"content":{"rendered":"<p><span data-contrast=\"auto\">When you\u2019re running a business, you need to keep check of your assets and liabilities on the balance sheet. Staying updated on the company\u2019s liquidity and financial situation can save you a lot of trouble and wrong decisions in tricky times.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Net working capital, also known as working capital, is a significant figure in a company\u2019s finances. It determines the ability of your business to meet its short-term goals and ensure enough funding for long-term operations.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Know what net working capital is, how to calculate it, and why it matters to your business.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"2\"><b><span data-contrast=\"auto\">What is Net Working Capital?<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Net working capital (NWC) or working capital is the difference between a company\u2019s current assets and liabilities on its balance sheet. Some typically calculate NWC by excluding current debt and cash portions.\u202f<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Think of it as the difference between the short-term assets and current liabilities of the business:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Current Assets: <\/span><\/b><span data-contrast=\"auto\">All assets you can convert to cash within a year, such as cash on hand, raw materials, receivables, currency, inventory, and prepaid expenses.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Current Liabilities: <\/span><\/b><span data-contrast=\"auto\">Any short-term debts you\u2019ll pay within a year, such as rent, utilities, accounts payable, debts, payroll, and other expenses.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">When a company has more current assets than liabilities, it has a positive net working capital and a healthier financial situation. The higher your NWC is, the more you are likely to cover current business obligations.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Meanwhile, if you have a negative NWC, which means your liabilities outweigh your current assets, your company might be in trouble in terms of funding future activities and growth.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, a very high working capital indicates stagnancy in inventory and excess cash, which you must also keep in check.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><b><span data-contrast=\"auto\">READ: <\/span><\/b><a href=\"https:\/\/www.crazydomains.com\/learn\/budgeting-tips-small-businesses\/\">11 Smart Budgeting Tips for Small Businesses<\/a><\/p>\n<h3 aria-level=\"3\"><b><span data-contrast=\"none\">Why Does Net Working Capital Matter to Your Business?<\/span><\/b><span data-ccp-props=\"{&quot;335559738&quot;:40,&quot;335559739&quot;:0}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Understanding the concept of net working capital lets you determine whether your company is producing enough cash from its daily operations to sustain its capital or drawing cash from assets to fulfil liabilities.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It helps you get a picture of your company\u2019s operational efficiency and financial health. Drastic changes in the working capital may impact cash flow in the financial modelling and corporate valuation of the business.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It\u2019s simple! Companies with higher working capital can invest money in growth opportunities. On the other hand, companies with negative NWC don\u2019t have the resources to pay their creditors or employees.\u202f<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Every business should aim to have a balanced working capital with enough investments and adequate cash flow.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The ideal NWC ratio is between 1.2 is to 2. Anything higher than two means the company has idle funds. Anything lower than one means it\u2019s struggling to pay its current liabilities.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">You can use working capital in several ways, such as investments, expansions, and acquisitions. You can also direct the resources to sales and marketing campaigns, new product research, and so on.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.crazydomains.com.au\/online-marketing\/?utm_source=blog&amp;utm_medium=link&amp;utm_campaign=CD_blog&amp;utm_term=net-working-capital-why-it-matters\" target=\"_blank\" rel=\"nofollow noopener\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-43234\" src=\"https:\/\/www.crazydomains.com\/learn\/wp-content\/uploads\/2022\/03\/CD_OMH_banner_img.jpg\" alt=\"What is Net Working Capital and Why It Matters to Your Business \" width=\"728\" height=\"245\" srcset=\"https:\/\/www.crazydomains.com\/learn\/wp-content\/uploads\/2022\/03\/CD_OMH_banner_img.jpg 728w, https:\/\/www.crazydomains.com\/learn\/wp-content\/uploads\/2022\/03\/CD_OMH_banner_img-300x101.jpg 300w\" sizes=\"(max-width: 728px) 100vw, 728px\" \/><\/a><\/p>\n<h3 aria-level=\"2\"><b><span data-contrast=\"none\">How to Calculate Net Working Capital<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">The method of calculating the net working capital may differ from business to business. It depends on what you need to include or exclude from current assets and liabilities. The general formula is as follows:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\"> <img decoding=\"async\" class=\"alignnone wp-image-51026 size-full\" src=\"https:\/\/www.crazydomains.com\/learn\/wp-content\/uploads\/2022\/12\/How-to-Calculate-Net-Working-Capital.png\" alt=\"What is Net Working Capital and Why It Matters to Your Business \" width=\"728\" height=\"330\" srcset=\"https:\/\/www.crazydomains.com\/learn\/wp-content\/uploads\/2022\/12\/How-to-Calculate-Net-Working-Capital.png 728w, https:\/\/www.crazydomains.com\/learn\/wp-content\/uploads\/2022\/12\/How-to-Calculate-Net-Working-Capital-300x136.png 300w\" sizes=\"(max-width: 728px) 100vw, 728px\" \/><\/span><\/p>\n<p><b><span data-contrast=\"auto\">Net Working Capital = Current Assets &#8211; Current Liabilities<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\">Another way to calculate this is:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Net Working Capital = (Account Receivable + Inventory) &#8211; Accounts Payable<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;335551550&quot;:2,&quot;335551620&quot;:2}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The working capital value will come in the currency of your country.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For instance, if your company has current assets worth $500,000 and current liabilities worth $100,000, the working capital value will be $400,000.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This means the company has the amount of $400,000 for use in short-term needs or funding.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A positive NWC indicates that the company has enough resources to cover its expenses and short-term debts. If all current assets are liquidated, there will be surplus cash to cover extra expenses.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A negative NWC means the company\u2019s current liabilities are greater than its assets. This indicates poor financial performance and problems in paying short-term debts should the need arise for liquidation.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><b><span data-contrast=\"auto\">RELATED:<\/span><\/b> <a href=\"https:\/\/www.crazydomains.com\/learn\/prepare-trial-balance-for-business\/\">5 Basic Steps in Preparing a Trial Balance for Your Business<\/a><\/p>\n<h3 aria-level=\"3\"><b><span data-contrast=\"none\">How to Increase the Net Working Capital of Your Company<\/span><\/b><span data-ccp-props=\"{&quot;335559738&quot;:40,&quot;335559739&quot;:0}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">The easiest way to increase the net working capital of your company is by increasing its current assets. You can do this in several ways:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The simplest way is to save cash. Reduce operational expenses to save up additional cash. One of the ways to do this is by getting a <\/span><a href=\"https:\/\/www.crazydomains.com.au\/domain-names\/\"><span data-contrast=\"none\">trustworthy domain<\/span><\/a><span data-contrast=\"auto\"> at a reasonable price.\u202f<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Build inventory reserves and prepay expenses.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Reduce bad debt write-offs by choosing the right customers to extend credit to.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Decrease short-term debts by researching credit terms and reusing company funds.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Incentivize receivables and improve inventory management.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Work with trustworthy, long-term vendors for better deals and discounts such as <\/span><a href=\"https:\/\/www.crazydomains.com.au\/web-hosting\/\"><span data-contrast=\"none\">top-tier solutions for your online needs<\/span><\/a><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Build a business line of credit for easy access to funds.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Get business credit cards to earn points, rewards, and cash backs.\u202f<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Plan expenses better by timing expansions or campaigns smartly.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3 aria-level=\"2\"><b><span data-contrast=\"auto\">Improve the Financial Health of Your Company!<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Keeping a stable and balanced net working capital can help improve your company\u2019s financial health.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">By boosting cash flow and reducing inefficient resource utilisation, you can plan how to work out your working capital and optimise company finances. Doing so lets you plan activities like exploring new markets, expanding production or creating extensive marketing campaigns well.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Keep your working capital optimal to mobilise excess cash while building a surplus asset repository to see your business through tough times.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you\u2019re running a business, you need to keep check of your assets and liabilities on the balance sheet. Staying updated on the company\u2019s liquidity and financial situation can save you a lot of trouble and wrong decisions in tricky times.\u00a0 Net working capital, also known as working capital, is a significant figure in a [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":51027,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1015],"tags":[1027],"coauthors":[2653],"class_list":["post-51025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-tips"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Net Working Capital and Why It Matters to Your Business<\/title>\n<meta name=\"description\" content=\"Stay updated on your company&#039;s finances to make the best decisions for your business. Learn what net working capital is and why it matters.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.crazydomains.com\/learn\/net-working-capital-why-it-matters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Net Working Capital and Why It Matters to Your Business\" \/>\n<meta property=\"og:description\" content=\"Stay updated on your company&#039;s finances to make the best decisions for your business. 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