Balance Sheet Terms

Balance Sheet

Snapshot of a firm’s financial state at a specific point in time

Net Working Capital

Current Assets - Current Liabilities

Net Operating Working Capital

Operating Current Assets - Operating Current Liabilities

This is the same as (Current Assets - Excess Cash) - (Current Liabilities - Notes Payable)

Total Debt

Includes short term and long term interest bearing debt

Tota Liabilities

Includes Total Debt and non-interest bearing liabilites

Order of Items on a Balance Sheet

(for assets)

Order is shown by liquidity

Starts with cash, cash equivalents, accounts receivables, etc

(for liabilities)

Order is the date the liability is due

first due, second due, third due