Surety Definitions

Tangible Net Worth (TNW) - this is defined as the sum of Retained Earnings, Capital Stock and subordinated shareholder or third party debt, less intangible assets (Goodwill, Licenses, etc.) and discounted assets.

Working Capital (W/C) - this is defined as current assets minus current liabilities. Current assets include cash, receivables, work in progress and inventory. Current liabiliities include short term bank debt, payables, billing in excess, current portion of long-term debt, shareholder loans, income tax payable and the current portion of deferred taxes.