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What is the difference between gross working capital and net working capital?

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Question added by Deleted user
Date Posted: 2013/08/26
Wael Al Jada'an
by Wael Al Jada'an , مدير التطوير و التسويق Marketing & Development Manager , وكالة الاساسية للشحن الجوي First Basic Express

Hi Mr.
Ali,   reference to what i understood from your question, Gross working capital= total productivity ÷ working hours =  ?> or < required growth % by another words, gross will be contain of: 1.
total productivity  2.
total result's 3.
total of working team  (this can be on "organization or department)   regarding net working capital: planned result ÷ actual result  net will contain: staff (by member) productivity management procedure tools motivation tools     I wish my answer match your good question 

ahmad al-zahaby
by ahmad al-zahaby , Finance Director , Maharat consulting co.

(1) Gross working capital include both of short term investments (current assets) and short term liabilities (current liabilities) .

(2) Net working capital is the difference between of the above mentioned and should be positive which means that the current ratio is mare than1 .

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

Gross Working Capital vs Net working Capital

 

•Working capital is the liquidity of a company and has two definitions namely gross working capital and net working capital.

 

•Gross working capital is the total of all current assets and does not hold much significance for the investors

 

•Net working capital is the excess of current assets over current liabilities of a company which is why it is an important indicator of company’s financial health.

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