The Fundamental Balance Sheet Equation

Static version :

NCP = WC - WCR

This relation will be used more often in its dynamic version (instead of its static one), where the variations, the changes would be considered (and not the absolute amounts).

Dynamic version :

Variation NCP = Variation WC - Variation WCR

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Sources :

Understanding Financial Statements, 1999, Marc Bertonèche, Ph. D. in Finance from the Northwestern University, Professor at the Bordeaux University and at Sciences-PO Paris, Visiting Professor at Harvard Business School and Oxford University.

Corporate Finance Course, Bernard Jaquier, Professor in Economics & Finance, Lausanne, Switzerland, 2021