Finance

Net Operating Working Capital (NOWC) Calculator

Measure the operating liquidity tied up in day-to-day business operations.

Current Assets ($)

Cash & Equivalents ($)

Current Liabilities ($)

Short-term Debt ($)

Annual Revenue ($)

Net Operating Working Capital —

Operating Current Assets —

Operating Current Liabilities —

NOWC as % of Revenue —

Formula:
Operating Current Assets = Current Assets − Cash & Equivalents
Operating Current Liabilities = Current Liabilities − Short-term Debt
NOWC = Operating Current Assets − Operating Current Liabilities

What is Net Operating Working Capital?

NOWC measures the capital tied up in a company's day-to-day operations. It strips out non-operating items (excess cash and short-term debt) to reveal how much working capital the business actually needs to run.

NOWC vs. Working Capital

Traditional working capital includes all current assets minus all current liabilities. NOWC is more precise — it excludes financial items to focus on operational needs like accounts receivable, inventory, and accounts payable.