NWC calculation and deferred revenue
Hi all,
I just wanted to ask whether you guys also incorporate deferred revenue when calculating net working capital. For me I usually use NWC = AR + Inventory - AP but not sure whether I would have to include deferred revenue. Or, does it differ by the industry of the company that I am looking into?
Also, if you include deferred revenue in the NWC calculation, do you only incorporate the current liability portion of the deferred revenue? Thanks in advance.
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