Net working capital is defined as:

A) Total liabilities minus shareholders' equity.
B) Current liabilities minus shareholders' equity.
C) Fixed assets minus shareholders' equity.
D) Total assets minus total liabilities.
E) Current assets minus current liabilities.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and operational efficiency of the business.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Current Liabilities

Obligations a company needs to pay off within one year or within its operating cycle, whichever is longer.