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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