Net working capital is computed as __________ .

Current assets - Current liabilities

The correct answer is option (4) : Current assets - Current liabilities

Net working capital is computed as:

• Current assets - Current liabilities Net working capital represents the difference between a company's current assets (such as cash, accounts receivable, and inventory) and its current liabilities (such as accounts payable and short-term debt). It provides insight into a company's short-term liquidity and its ability to meet its short term financial obligations.