balance sheet

working capital

The difference between a company's current assets and current liabilities. It measures the liquidity available to a business for its day-to-day operations. Positive working capital indicates that a company has sufficient resources to cover its short-term obligations. FORMULA = current assets) = current assets - current liabilities

current assets

Assets that are expected to be converted into cash or used within one year, such as cash, accounts receivable, and inventory. FORMULA = inventories + receivables + cash and other cash equivalents

net assets

represents the equity held by the owners of a company. Net assets indicate the financial health of a business. FORMULA = nca + ca - cl - ncl

net worth)

The value of a company's total assets minus its total liabilities, reflecting the owner's equity in the business. FORMULA = = non-current assets + working capital (or net

current assets) - non-current liabilities

assets employed

The total resources that a company uses to generate profits, including both current and non-current assets. net current assets + non-current assets. FORMULA= net current assets + non-current assets

total equity

The remaining interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders. FORMULA = share capital + reserves

capital employed

The total amount of capital that is utilized in a business to generate profits. formula = total equity + non-current liabilities

assets employed

assets employed = capital employed