is a liquidity ratio often used to gauge short-term financial well-being. It’s also known as the working capital ratio. Current assets are assets that a company expects to use or sell within one ...

But if you want a slightly more precise warning that you'll need a cash boost in the future, you can calculate your working capital ratio. Working capital ratio Working Capital Ratio = Current ...

What is the current ratio? The current ratio, sometimes referred to as the working capital ratio, is a metric used to measure a company's ability to pay its short-term liabilities, or those due ...

Assess Working Capital Ratios: Metrics like the current ratio, quick ratio, and working capital turnover provide insights into how efficiently a company manages its short-term assets and liabilities.

For instance, a declining liquidity ratio may indicate deteriorating financial health or inefficient working capital management. However, it may also mean a company is trying to hold onto less ...