![]() It entails comparing the revenues generated from the business and the funds financing the enterprise to make profits. Net Working Capital: Net working capital is the difference between current assets and current liabilities. Working capital turnover is also known as the net sales to working capital.Gross Working Capital: Gross working capital is simply the total amount of current assets of a business before considering any short-term liabilities.Fluctuating working capital only considers the variable liabilities the company has complete control over. However, the company may have a monthly liability relating to insurance it does not have the option to decline. ![]() For example, companies may opt into paying for inventory as it is a variable cost.
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