Working Capital Ratio

Working Capital Ratio (also referred to as current position) is a measure of how much liquid assets a business has available at any given time. Working Capital Ratio takes the assets available and subtracts any current liabilities.

 

Working Capital = current assets - current liabilities

 

This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.

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