Net Working Capital is a topic that causes lots of confusion….but it doesn’t need to be complicated. In this video, we offer a simple visual, and plain English explanation of Net Working Capital. Watch this video so you can nail your interview and land the job!

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This video can help you answer common interview questions like:
What is Net Working Capital in Plain English?
What is the definition of Net Working Capital?
What are Current Assets?
What are Current Liabilities?
What are Accounts Receivable, Inventory and Prepaid Expenses?
What are Accounts Payable, Accrued Liabilities, and Deferred Revenue?
What is the impact to cash from Positive Net Working Capital?
What is the impact to cash if a business has significant Deferred Revenue?

Learn how to answer interview questions from a former Investment Banking (UBS LA), Private Equity (Golden Gate Capital + HIG Capital) and Investment Management ($200B Mutual Fund / $2B Hedge Fund) practitioner…and Adjunct Professor in Columbia Business School’s Value Investing Program who has trained thousands of current IB/PE/HF/MF professionals.

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Contents:
00:00 Intro
00:35 What is Net Working Capital?
01:50 What are Current Assets?
03:40 What are Current Liabilities?
05:10 Simple Net Working Capital Explanation: Pizza Shop
08:24 Working Capital Impact: Current Assets vs Current Liabilities
09:55 Big Picture Net Working Capital Example: Growing Business
11:56 Big Picture Net Working Capital Example: Declining Business
13:17 Net Working Capital Recap

Hope this is helpful and let us know if you have any questions in the comment section below.

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