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Q » What is working capital ratio and how is it calculated?
01 Nov, 2025
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A » The working capital ratio, also known as the current ratio, is a financial metric that indicates a company's ability to meet its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. A ratio above 1 suggests good short-term financial health, as it indicates that the company has more current assets than current liabilities.
01 Nov, 2025
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