January 26, 2022


Accounting + Finance Blog

FCMB Net Working Capital Computation for 2020 Annual Report

FCMB Net Working Capital Computation for 2020 Annual Report

FCMB annual report 2020 will be analyzed in this article to explain net-working capital. I have written about it in a previous article. Here, the focus is on using the formula to compute for working capital. Note that the article is not investment advice. It is for educational purposes.

The formula for working capital is current assets less current liabilities. Here, we expect that the current assets should be more than the liabilities. But this may not be through, especially for banks. Their current liabilities are more. This is because banks’ main business is the acceptance of deposits. And these deposits are liabilities to it.

Calculating FCMB Net Working Capital

As I did with Access Bank, you can easily calculate the net working capital for FCMB. First of all, you need to download its annual report here. Also, the screenshot below shows the current assets and liabilities of FCMB.

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FCMB Net Working Capital Computation for 2020 Annual Report

The total current assets for the money deposit bank was 544,010,986 and 495,215,359 for 2020 and 2019 financial year respectively. While the current liabilities are 1,386,729,885 and 1,077,792,108. Next, I subtracted 544,010,986 from 1,386,729,885 to get the working capital for the year 2020. Which is -842,718,899. The same is done for the year 2019 and the result is -582,576,749.

The working capital is negative. Meaning that the bank relied on liabilities to do its business. This is fair because money deposit banks are allowed to collect deposits from their customers and use them for business.


Net working capital is the difference between current assets and current liabilities. For FCMB, it is -842,718,899 and -582,576,749 for 2029 and 2019 financial year. Note that for banks, a positive working capital might be bad for business.