Net Current Assets

Net Current Assets is total current assets less total current liabilities. Current assets is the value of cash and other assets that might reasonably be converted into cash in the current year. While current liabilities reflect all the debts and obligations due in the next 12 months or in the current year.

Net Current Assets = Current Assets - Current Liabilities

Net Current Assets are also known as Working Capital or Operating Assets. It is a good measure of the short and medium term financial health of a company, and may indicate by how much it can expand its operations without relying on external borrowing or other capital raising forms.