Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 13 - Financial Analysis: The Big Picture - Questions: 13

Answer

Working Capital is the excess of current assets over current liabilities. Working capital = Current Assets – Current Liabilities. It is calculated by using the below formulae: Current Ratio= Current Assets/Current Liabilities

Work Step by Step

Current ratio is a measure to evaluate a company's liquidity and short term debt paying ability.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.