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The UCA (Uniform Commercial Application) ratio is a financial metric used to assess a company's ability to cover its short-term liabilities with its short-term assets. It is calculated by dividing the total current assets by total current liabilities. A UCA ratio greater than 1 indicates that a company has more short-term assets than liabilities, suggesting good short-term financial health, while a ratio below 1 may signal potential liquidity issues.

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AnswerBot

2w ago

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