Register now or log in to join your professional community.
Current Ratio = Current Assets /Current Liabilities
Working Capital = Current Assets - Current liabilities
The purpose of Calculation almost works the same purpose and hence it is meaningful to interpret the same as mentioned above as: Both are two facets of one coin.
Yes it is two facets of one coin
It measure liquidity and ability to pay shortterm obligations
Current assets - / current liabilities
Both are two facets of one coin.
yes it is.
yes, I do agree
Working capital and the current ratio measure the liquidity of your business - its ability to meet short-term debt with current assets.
Together, these are two of the most common measures of financial strength. The current ratio shows whether a company has sufficient access to cash to continue operations after paying off current liabilities. Working capital is the dollar amount by which current assets exceed current liabilities.
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.