The current ratio, sometimes called the quick ratio, is a liquidity ratio that measures a company’s coverage of its current liabilities by its current assets. It tracks the short-term solvency of the business by assessing the number of times the short-term assets, those that will be converted into cash in less than 12 months, cover
A company’s working capital is understood as the result from subtracting current assets from current liabilities. As a metric, the Working Capital Ratio is also known as the current ratio and it calculates a company’s capacity to cover for its current liabilities with its current assets. Simply put, it is a liquidity measure that unveils