Working Capital Ratio
2 July 2021
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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