$47

The Working Capital Formula and Current Ratio

Your current ratio and other working capital ratios are important financial metrics used by investors to determine whether or not they should invest in a company. Banks may use them when deciding whether to give you a loan. Do you know what a good current ratio is?

I’ll explain working capital, the current ratio, and the quick ratio. I show a sample balance sheet and how to calculate the current ratio and quick ratio for it.

This video comes from my Managing Cash Flow course.

This video comes from my Managing Cash Flow Course

CPAs: Want to get CPE credit for videos and courses like this? Check out my CPE page.

This Site cannot and does not contain legal, tax, personal financial planning, or investment advice. The legal, tax, personal financial planning, or investment information is provided for general informational and educational purposes only and is not a substitute for professional advice. Accordingly, before taking any actions based on such information, we encourage you to consult with the appropriate professionals. We do not provide any legal, tax, personal financial planning, or investment advice. CFO Perspective, LLC assumes no responsibility for errors or omissions in the contents on the site. THE USE OR RELIANCE OF ANY INFORMATION CONTAINED ON THIS SITE IS SOLELY AT YOUR OWN RISK.