Net Working CapitalDefinitionThe current assets of the business, excluding its inventory minus its current liabilities, excluding the short-term portion of the long-term debt. What It MeansNet working capital is also known as the business net liquid assets. This value is used in the income-based Multiple of Discretionary Earnings business valuation method to adjust the discretionary cash flow multiple. |
Business Valuation ToolsNeed to Value a Business?See how to value a business based on income, assets and market comparables. New to Business Valuation?Business Valuation Handbook gives you 200 pages of must-have information on valuing a business. |
