That's because it can help them to determine if a company is financially healthy enough to pay off its short-term debts and other current liabilities. A low liquidity ratio could signal a company ...

The current ratio, sometimes referred to as the working capital ratio, is a metric used to measure a company's ability to pay its short-term liabilities, or those due within a year. In other words ...

Forecasting helps estimate how these elements will impact current assets and liabilities. On the other hand, high working capital isn’t always a good thing. It might indicate that the business ...