Trade Working Capital

In business finance, trade working capital (TWC)^[1]^[2] is the difference between current assets and current liabilities related to the everyday operations of a company. TWC is usually expressed in percentage of sales.

calculations

A typical way of calculating it is by subtracting accounts payable from the sum of accounts receivable and inventory.^[2]

References

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Original source: https://en.wikipedia.org/wiki/Trade working capital. Read more

[1] Johnson, Rose. "Trade Working Capital Vs. Total Working Capital". https://smallbusiness.chron.com/trade-working-capital-vs-total-working-capital-34033.html.

[:0-2] 2.0 ^2.1 "What Is Trade Working Capital and Its Formula?" (in en). https://www.acquire.fi/glossary/trade-working-capital-definition-calculation-and-example.

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