working capital ratio

Get A Quote

Roadheaders

working capital ratio - Yahoo Answers Results

More

Working Capital Ratio - My Accounting Course

What is Working Capital? Definition: The working capital ratio, also called the current ratio, is a liquidity ratio that measures a firm's ability to pay off its current liabilities with current assets. The working capital ratio is important to creditors because it shows the liquidity of the company.

More

Working Capital Definition | Investopedia

The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient. Also known as "net working capital".

More

A High Working Capital Turnover Ratio Indicates What ...

Determining a High Turnover Ratio. A working capital turnover ratio is generally considered high when it is greater than the turnover ratios of similar companies in the same industry.

More

Working Capital Ratio - News

More

Days Working Capital - Investopedia

To calculate days working capital, the following formula can be used: Days working capital can be used in ratio and fundamental analysis. An accounting and finance ...

More

Working Capital - Financial Ratio #15 - The Balance

Working capital on the balance sheet is calculated by taking a company's current assets and subtracting current liabilities. It's an important number.

More

What is a working capital ratio? | BDC.ca

The working capital ratio is calculated simply by dividing total current assets by total current liabilities. For that reason, it can also be called the current ratio. It is a measure of liquidity, meaning the business's ability to meet its payment obligations as they fall due.

More

What is the working capital ratio? | AccountingCoach

Some use the term working capital ratio to mean working capital or net working capital. Working capital is defined as current assets minus current liabilities. When used in this manner, working capital ratio is not really a ratio. Rather, it is simply a dollar amount.

More

What is the working capital turnover ratio? | AccountingCoach

The working capital turnover ratio is also referred to as net sales to working capital. It indicates a company's effectiveness in using its working capital. The working capital turnover ratio is calculated as follows: net annual sales divided by the average amount of working capital during the same 12 month period.

More

Liquidity Measures: Net Working Capital, Current Ratio ...

Liquidity measures — net working capital, current ratio, quick ratio, cash ratio — help to ascertain a firm’s ability to pay operating expenses and other short-term, or current, liabilities.

More

Working capital ratio — AccountingTools

The working capital ratio is the same as the current ratio. It is the relative proportion of an entity's current assets to its current liabilities, and is intended to show the ability of a business to pay for its current liabilities with its current assets.

More

Get A Quote

“ Need help? Call our award-winning support team 24/7 at Online Chat ”

Contact Us