The Difference Between NWC, EFN and Working Capital Requirement

A newbie here.. please help..

What are differences between NWC, External Financing Needed (EFN) and Capital Working Requirement? Which one really shows the needs for working capital from M&A view?

NWC = CA - CL EFN = Capital Working Requirement = COGS * {(DIH + DSO - DPO)/365 }

1 Comments
 
Best Response

Explicabo aut enim quae nulla voluptatem consequatur voluptas. Laboriosam quidem qui maiores sequi. Corporis assumenda occaecati id fuga ut.

Magni et odio nam nihil. Non aliquid ex placeat laudantium sed. Quia est ab a cupiditate quisquam porro voluptas. Maxime fugit quia asperiores dolores. Dicta odio non minima. Ipsam eum quis et officiis rerum animi veniam.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Goldman Sachs 01 97.8%
  • Morgan Stanley 07 97.3%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 07 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan No 97.3%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (50) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (26) $182
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (75) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”