{
  "version": "1.3.0",
  "releasedAt": "2026-05-20",
  "kpi": {
    "rogueId": "finance.net_working_capital_adjustment",
    "slug": "net_working_capital_adjustment",
    "domain": "finance",
    "defaultLabel": "Net Working Capital Adjustment",
    "description": "Signed net effect on cash of changes in current assets and current liabilities — receivables coming in (positive), payables going out (negative), prepaid expenses (negative when paid, positive when burned down), and accrued liabilities (positive when accrued, negative when settled). The rollup of `finance.current_asset_adjustments` and `finance.current_liability_adjustments`. Common pitfall: at early stage this is dominated by payroll-cycle noise and is near zero — once the company adds enterprise contracts with annual prepayments or 60-day net terms, this can swing 1–3 months of burn either direction. Becomes material at Series A+; ignored before that.",
    "fieldType": "currency",
    "unit": null,
    "maturity": "general",
    "suggestedForStages": [
      "seriesA",
      "seriesB",
      "seriesC",
      "public"
    ],
    "defaultOwningFunctions": [
      "Finance"
    ],
    "stageRelevance": {
      "seriesA": "recommended",
      "seriesB": "recommended",
      "seriesC": "recommended",
      "public": "recommended"
    },
    "definitionSource": {
      "tier": "editorial",
      "sourceName": "imboard Editorial",
      "sourceUrl": null,
      "sectionRef": null,
      "publicationDate": "2026-04-01",
      "attributionNotice": null
    },
    "formula": "net_working_capital_adjustment = current_asset_adjustments + current_liability_adjustments (signed). Positive value means working capital is releasing cash; negative means working capital is consuming cash beyond what the P&L shows.",
    "whyItMatters": "Bridges the gap between accrual-basis P&L and cash-basis runway. A board reading the P&L alone can miss a working-capital headwind that is materially shortening runway.",
    "interpretationGuidance": "Track period-over-period: a multi-period negative trend (working capital absorbing cash) usually means DSO is lengthening or supplier terms are tightening — both warrant a board note. No published threshold exists for \"good\" magnitude — it scales with revenue and contract mix.",
    "relatedKpiIds": [
      "finance.current_asset_adjustments",
      "finance.current_liability_adjustments",
      "finance.operationally_available_cash",
      "finance.working_capital_adjustments_list"
    ],
    "metricBasis": {
      "timeBasis": "period_flow",
      "moneyBasis": "cash",
      "production": "computed"
    }
  }
}