Other Measures

Net Working Capital

The amount of money it has available to spend on its day-to-day business operations, such as paying short-term bills and buying inventory. We use the definition of Joel Greenblatt and exclude excess cash as this is not needed to conduct the business. We also exclude short-term interest-bearing debt from the current liabilities, as Greenblatt only looks at payables for which the company does not need to pay interest.

Net Working Capital = MAX( Current Assets - Excess Cash - ( Current Liabilities - ( Total Debt - Long Term Debt ) ) , 0 )