Working capital ratio

working capital ratio
See current ratio.
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Definition of
working capital ratio
Accounting
ratio of current assets to current liabilities a ratio of current assets to current liabilities. This is an indicator of a company's ability to pay its short-term debts.

Working capital ratio
The working capital ratio is an indicator of the efficiency of a company's management of stocks, debtors and creditors, it is:
(stocks + trade debtors - trade creditors) ÷sales ...

Working Capital Ratio
With your working capital ratio in hand, you can make sound estimates about how much funding your business will require before entering a period of growth, and measure any improvement initiatives ...

Working capital ratio
Working capital expressed as a percentage of sales.
CAPITAL ...

Working Capital Ratio Current assets of a company divided by its current liabilities. This is a measure of a company's liquidity.

Working capital ratio - This ratio shows working capital as a proportion of sales.

Working capital ratio
Working capital expressed as a percentage of sales.
Working order ...

Working Capital RatioExpand/Collapse
Current assets of a company divided by its current liabilities. This is a measure of a company's liquidity.
Working ControlExpand/Collapse ...

A financial ratio similar to the current ratio or working capital ratio, defined as: current assets minus stocks divided by current liabilit...(Read more)
Acquisition ...

Current Ratio: Also known as Working Capital Ratio. This ratio is a measure of liquidity of the business. Equal to current assets divided by current liabilities.

A declining working capital ratio over a longer time period could also be a 'red flag' that warrants further analysis.

A firm's working capital ratio (current assets divided by current liabilities) is a measure of its liquidity,
earning assets of an organization, including marketable securities,receivables, and inventory, which can be converted to cash if needed.

Also known as "net working capital", or the "working capital ratio".
Watch: Working Capital
Reading The Balance Sheet
Evaluating A Company's Capital Structure
Working Capital Works
How To Analyze A Company's Financial Position ...

The deployment of current assets and current liabilities so as to maximize short-term liquidity.
Working capital ratio
Working capital expressed as a percentage of sales.
Working control ...

Working Capital - A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:
Working Capital = Current Assets - Current Liabilities ...

See also: Expense, Cost of capital, Targets, Capital structure, Cash equivalent