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Calculation of Net Working Capital

Duata Fanai (1 Points)

13 April 2023

While calculating Net Working Capital, do we need to include Total Net Worth, Depreciation etc. ?

If anything need to include for calculation other than Current Assets and Current Liabilities kindly share here.

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7 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14692 Points)
Replied 13 April 2023

No , Current Assets less Current Liability only for Calculation of net working Capital.

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 13 April 2023

There is a net working capital calculator online. Try it and it's useful because it gives many simulations.ie when there can be negative and positive working capital.

sabyasachi mukherjee (27529 Points)
Replied 14 April 2023

As per recent ammendment after companies act 2013.
Current assets are seperately classified.
Current liabilities are seperately classified.

1 Like

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 14 April 2023

That is because of indas advent. I hope as change to indas one day soon.

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 14 April 2023

That is because of indas advent. I hope as change to indas one day soon.

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sabyasachi mukherjee (27529 Points)
Replied 15 April 2023

Irrelevant seems

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 15 April 2023

There is nothing wrong. Indas is also a part harmonised accounting. It doesn't mean India loves other country's more. Everyone loves their own country. Think of it as a positive change we adopted and different technology. We adopted lots of technology and one day, India will also manufacture some new technology where others will use. That's what evolution is. I've gone through first financial statements and it all looked funny.