To calculate this ratio, data is drawn directly from the company’s balance sheet. The formula for the net working capital ratio is: Net Working Capital Ratio = Current Assets ÷ Current ...

The net working capital ratio can inform how a company allocates ... The net working capital formula indicates the amount of short-term liquid assets remaining after settling short-term debts.

The current ratio is sometimes called the working capital ratio. The current ratio compares all of a company’s current assets to its current liabilities. The current ratio helps investors ...

Another measure that can be taken to reduce the debt-to-capital ratio is more effective inventory management. Inventory can take up a very sizable amount of a company's working capital.