Working Capital Ratio

Definition

Current assets divided by current liabilities — an alternative expression of the current ratio.

Visual Reference

Example

Working Capital Ratio is used by analysts to benchmark company performance against peers.

In Practice

Also known as: Current Ratio. Closely related to Current Ratio, Working Capital.

Word Usage

Liquidity analysis; Credit assessment; Business health

Use Case

Applied in Financial Ratios contexts: Liquidity analysis; Credit assessment