Difference between revisions of "Working Capital Ratio"
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| − | ' | + | The working capital ratio is calculated simply by dividing total current assets by total current liabilities. For that reason, it can also be called the current ratio. It is a measure of liquidity, meaning the business's ability to meet its payment obligations as they fall due.<ref>[https://www.bdc.ca/en/articles-tools/money-finance/manage-finances/using-working-capital-ratio How to use the working capital ratio to keep your business healthy]</ref> |
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| + | === See Also === | ||
| + | *[[Business Strategy|Define Business Strategy]] | ||
| + | *[[IT Strategy (Information Technology Strategy)|Definition of IT Strategy]] | ||
| + | *[[E-Strategy|Define e-Business Strategy]] | ||
| + | *[[IT Governance|Define Corporate Governance of Information Technology]] | ||
| + | *[[Enterprise Architecture|Define enterprise architecture]] | ||
| + | *[[IT Sourcing (Information Technology Sourcing)|What is IT Sourcing?]] | ||
| + | *[[IT Operations (Information Technology Operations)|Define IT Operations]] | ||
| + | *[[Chief Information Officer (CIO)|CIO]] | ||
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| + | ===References=== | ||
| + | <references /> | ||
Revision as of 14:50, 6 December 2022
The working capital ratio is calculated simply by dividing total current assets by total current liabilities. For that reason, it can also be called the current ratio. It is a measure of liquidity, meaning the business's ability to meet its payment obligations as they fall due.[1]
See Also
- Define Business Strategy
- Definition of IT Strategy
- Define e-Business Strategy
- Define Corporate Governance of Information Technology
- Define enterprise architecture
- What is IT Sourcing?
- Define IT Operations
- CIO