It is used for measuring in short-term status of a business. We use this to see the ability of company management that use the asset efficiently. Net working capital usually get in positive status which indicates the short-term asset available to pay short-term liabilities. However, if it get in negative status, it means that the business might not have enough asset available to spend for current liabilities which may be dangerous to the company and can be bankrupted. It can be show in trend which we can see the status in the past to recent years. The trend will show the ability of business, it can use its asset good enough to pay current liabilities or not. It can show the company is growing quickly or not. For example, if the company has positive net working capital, it is an opportunity for the company to increase the scale of business.