Diff. between working capital, capital employed & net worth

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Sandesh Seth

Sandesh Seth (Querist)
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24 July 2014 please specify Diff. between working capital, capital employed & net worth I am confused in above

P V Ram

P V Ram (Expert)
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24 July 2014 In short:

Working Capital is Current Assets less Current Liabilities.

Capital Employed is Fixed Assets + Current Assets - Current Liabilities = Fixed assets + Working Capital = Equity holders' funds + Long Term Loans

Net worth is Total Assets less Outside Liabilities.

Thanks!

Sandesh Seth

Sandesh Seth (Querist)
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21 July 2015 THANKING YOU SIR FOR A valuable advice

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