What component is NOT typically included in calculations of working capital?

Working capital is a financial metric that represents the difference between a company's current assets and its current liabilities. It is an essential indicator of a company's operational efficiency and short-term financial health.

The correct component not typically included in calculations of working capital is long-term debt. This is because working capital specifically focuses on short-term financial obligations and assets that are intended to be used or settled within a year.

In contrast, short-term liabilities are included in working capital calculations as they represent obligations that need to be settled in the near term. Accounts receivable and inventories, which are both current assets, are also included in working capital calculations, as they represent resources that are expected to be converted into cash within a short time frame. Long-term debt, however, pertains to financing that is due beyond one year and thus is not a factor in determining working capital.