Trade Working Capital

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DEFINITION of 'Trade Working Capital'

The difference between current assets and current liabilities directly associated with everyday business operations.

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BREAKING DOWN 'Trade Working Capital'

This measure is relevant in analyzing the near-term financial health of a company, as only current assets and current liabilities used for everyday business are considered.

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RELATED FAQS
  1. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

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