Glossary
Glossary
Glossary
Working Capital Ratio
Working Capital Ratio
Definition
Also known as the current ratio, it measures a company's ability to pay short-term liabilities with short-term assets. It is calculated by dividing current assets by current liabilities. A ratio above 1 indicates a company can cover its short-term obligations.
Also known as the current ratio, it measures a company's ability to pay short-term liabilities with short-term assets. It is calculated by dividing current assets by current liabilities. A ratio above 1 indicates a company can cover its short-term obligations.
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