Ans:
There are various methods to calculate the net working capital depending on the analysis required.
Formulas:
Net Working Capital (NWC) = Current Assets (CA) – Current Liabilities (CL)
Net Working Capital (NWC) = Current Assets (minus cash) – Current Liabilities (minus debt)
Net Working Capital (NWC) = Accounts Receivable Stock (Inventory) – Accounts Payable