Working capital ratio also known as Current Ratio or Liquidity Ratio is the calculate as Current Assets by Current Liability. This helps to calculate the company short term ability or financial stability. A value of WCR below 1 indicates a negative working capital.
Working capital ratio also known as Current Ratio or Liquidity Ratio is the calculate as Current Assets by Current Liability. This helps to calculate the company short term ability or financial stability. A value of WCR below 1 indicates a negative working capital.
If your company's current assets is 2500 and current liabilities is 1500, then the current ratio 2500 / 1500 is 1.67. Hence, it is a normal working capital.
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