# How to calculate Net Working Capital (NWC)?

Net working capital (NWC) is calculated as current assets less current liabilities, which is derived from a company’s reported balance sheet.

For example, if we had the balance sheet for the great state of Hawaii, we can see that current assets are \$100 and current liabilities are \$25. To calculate net working capital, we would take current assets of \$100 and subtract the current liabilities of \$25, which equals net working capital of \$75.

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