# Formula for gross working capital

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*2020-02-23 11:25*

Jan 18, 2019 Current assets Current liabilities Working capital. It's that simple. Say a company has 500, 000 in cash on hand. Another 250, 000 is outstanding and owed to the company in the form of accounts receivable. It has 1 million in inventory and physical property assets. Its current assets are therefore 1. 75 million.Gross Working Capital. Gross working capital is the total amount of a company's current assets. It includes cash on hand, accounts receivable, inventory and shortterm investments. Liabilities are not included in this calculation, so gross working capital offers only formula for gross working capital

The working capital formula is: Working capital current assets current liabilities The working capital formula tells us the shortterm, liquid assets remaining after shortterm liabilities have been paid off. It is a measure of a companys shortterm liquidity and important for performing financial