Trade working capital

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In business finance, trade working capital (TWC) [1] [2] is the difference between current assets and current liabilities related to the everyday operations of a company. TWC is usually expressed in percentage of sales.

calculations

A typical way of calculating it is by subtracting accounts payable from the sum of accounts receivable and inventory. [2]

References

  1. ↑ Johnson, Rose. "Trade Working Capital Vs. Total Working Capital". smallbusiness.chron.com. Retrieved 20 June 2025.
  2. 1 2 "What Is Trade Working Capital and Its Formula?". acquire.fi. Retrieved 20 June 2025.
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