Launching Superjoin for Finance, an Excel AI Agent built for Modeling & Analysis -> Learn More 🎉

Launching Superjoin for Finance, an Excel AI Agent built for Modeling & Analysis -> Learn More 🎉

Working Capital Ratio

Glossary

Glossary

Working Capital Ratio

Glossary

Working Capital Ratio

Definition

Also known as the current ratio, it measures a company's ability to pay short-term liabilities with short-term assets. It is calculated by dividing current assets by current liabilities. A ratio above 1 indicates a company can cover its short-term obligations.

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