answersLogoWhite

0

Working capital ratio

Updated: 4/28/2022
User Avatar

Wiki User

13y ago

Best Answer

2:1

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Working capital ratio
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are the most five important ratios for banks?

current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio


How can one calculate the working capital ratio?

One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.


What is the role of balance sheet in working capital ratio?

please help!!!


What is the purpose of working capital?

Working capital is defined as "a measure of both a company's efficiency and its short-term financial health." It is a ratio calculated with this formula: current assets - current liabilities = working capital.


An increase in a company's working capital ratio generally indicates an financial position?

stable


Define funded debt to net working capital ratio?

wohi jo tera baap


What is a asset utilization ratio?

Sales over Operating assets /which are long term +working capital/


Why working capital is important and some ratio of working capital?

Working capital is a business's blood as well as the oxygen that gives your business its every breath. In other words, working capital is what keeps your business alive and functioning. Working capital is obviously very important. Have you noticed that your business's cash flow is not as steady as you wish? Has it become difficult to pay for your business's day-to-day expenses? If so, you might be in need of working capital.


An aggressive working capital policy has what characteristics?

An aggressive working capital policy has various characteristics. The main characteristic is having a high ratio of short-term debt to long-term sources of funds.


Evaluation of a company's ability to pay current liabilities?

Use the following ratios to evaluate a company's ability to pay current liabilities: Working Capital Ratio Current Ratio Acid-test Ratio


What is trend ratio?

A trend ratio is a good graphical display of a specific period in time. For example (4 years) and the points on the graph are representative of the (ratio) points---representing each year. For example if you are looking at a trend ratio of working capital...you would hope the trend is going upward, because you always want working capital to trend upward or remain the same (if it was sufficient to begin with). If the ratio is trending downward for working capital you are having less money to work with that is not already spoken for by creditors previously. A graphical display is always easier to look at when you are comparing ratios. NOW take it a step further and have the Revenue Dollars on the X axis and the % of revenue dollars on the Y axis and do a simple mathematical formula and realize your % of change and your loos or gain of Working Capital Exposed Dollars.


What is working capital?

Working capital is a measure of a company's operational efficiency and short-term financial health, calculated by subtracting current liabilities from current assets. It represents the funds available for day-to-day operations and is important for assessing a company's liquidity and ability to cover short-term obligations. A positive working capital indicates that a company has more current assets than liabilities, while a negative working capital may suggest potential financial difficulties.