WC vs. NOA vs. Monetary someone, net, difference, capital, assets

grharmeyer

Could someone quickly explain the difference among working capital, net operating assets, and monetary assets? Thank you.

SeanWest

Monetary assets are money or something that can be converted to money :p

Rasec

WCInv and NOA are somewhat related. I remember them like this:

in calculation of WCInv everything is related to CURRENT assets/liabilities/debt

WCInv = change in [(Current Assets - cash&eqv) - (Current Liabilities - Current Debt)]

notes payable is short term debt so it is current, current portion of long term debt is current as well.

For NOA everything is related to TOTAL assets/liabilities/debt

NOA = (Total Assets - cash&eqv) - ( Total Liabilities - Total Debt)

Kapie

Working capital is current assets - current liabilities. Changes in working capital are used in calculating FCF, although we actually use changes in net working capital (ex. cash and short-term debt/notes payable).

jarobi04

WC = Change in current assets - Change in curent Liabilities
= (change in current assets - cash and equiv) - (current liabilities - notes payable - current
portion of LT debt)



NOA = Net Assets - Net Liabilities
= (Total Assets - cahs and equiv) - (Total liab - Total Debt)


Monetary assets are cash and receivables, and liabilities include all debt and AP