Which of the following correctly states the formula for Net Working Capital (NW

Net Working Capital (NWC) = Current Assets minus Current Liabilities. It measures the short-term financial health and liquidity buffer of a business. Positive NWC (Current Assets > Current Liabilities) indicates the business can meet all short-term obligations and has a cushion for operations. Negative NWC indicates potential liquidity stress. Current Assets include cash, trade receivables, and inventory; Current Liabilities include trade payables, short-term borrowings, and accrued expenses. Efficient NWC management involves optimising the Cash Conversion Cycle — minimising the time between spending cash on operations and receiving cash from customers.