Skip to content

Working capital (also known as general liquidity ratio) represents the money the company has for its current operating activities. The working capital ratio indicates whether the company has enough assets to respect its current financial obligations.

Depending on the line of business, a financial ratio between 1.2 and 2.0 is normally considered appropriate. If the ratio is lower than 1, general liquidity is not sufficient to cover current liabilities. If the working capital ratio is greater than 2, it could mean the company is not investing its excess liquidity.

  • Your information
  • Working capital ratio
  • Current assets *
  • Current liabilities *
  • Working capital ratio
  • This field is for validation purposes and should be left unchanged.

Need advice?

We will reply within 24 hours or on the next business day.

  • This field is for validation purposes and should be left unchanged.
Consumer
Business