Understanding Changes in Working Capital: Formula and Implications
In the next section, the change in net working capital (NWC) – i.e. the increase / (decrease) in net working capital (NWC) – will be determined. Briefly, an increase in net working capital (NWC) is an outflow of cash, while a decrease in net working capital (NWC) is an inflow of cash. The formula to […]
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