PNC Financial Services Group Interview Question
How does Net Working Capital affect the Operating Cycle? (follow up to What is the Operating Cycle?)
Interview Answer
Anonymous
Oct 14, 2014
Net Working Capital is Current Assets - Current Liabilities. It is a way to determine if a company is able to finance their operations with cash they already have. It is also a good indicator as to if the company will be able to finance projects with cash from operations or if they will have to finance it.
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