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Working capital, also known as net working capital (NWC), is the difference between a company’s current assets—such as cash, accounts receivable/customers unpaid bills, and inventories of raw materials and finished goods—and its current liabilities, such as accounts payable and debts. Its a commonly used measurement to gauge the short-term health of an organization.Working capital, also called net working capital, represents the difference between a company’s current assets and current liabilities.