Trade working capital
Topic: Finance
From HandWiki - Reading time: 1 min
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
- ↑ Johnson, Rose. "Trade Working Capital Vs. Total Working Capital". https://smallbusiness.chron.com/trade-working-capital-vs-total-working-capital-34033.html.
- ↑ 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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