What is net working capital? Net-Net Working Capital

Net working capital, also known as Net-Net Working Capital in English, or NNWC for short, is a financial indicator that measures the value of the remaining assets of a listed company when its assets are liquidated. The concept of net working capital comes from the Net-Net investment strategy proposed by investment guru Benjamin Graham, which uses the company's immediately available circulating assets to measure the value of a company in order to find the cheapest investment object. In the Net-Net concept, there are two indicators, one is net working capital, which is the most conservative way to value company assets, and the other is net current asset value (NCAV), which is a simpler way to estimate assets than net working capital. To calculate net working capital, adjust a company's current assets by a certain percentage and then subtract total liabilities. Net-Net Working Capital Per Share is obtained when the net working capital is divided by the current number of shares outstanding. Comparing the net working capital value per share to the current stock price, if the current stock price is closer to the net working capital per share, the cheaper the stock is and is an investment worthy of consideration in Benjamin Graham's Net-Net investment strategy.