At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

The most rigorous test of a firm's ability to pay its short-term obligations is its?

Sagot :

The working capital ratio is a measurement of a company's short-term capability of paying its financial obligations.

The working capital turnover ratio measures how efficaciously a business makes use of its operating capital to supply sales. A better ratio indicates greater efficiency. In preferred, an excessive ratio can assist your employer's operations to run greater easily and limit the want for added funding.

The working ratio measures a corporation's potential to recover running expenses from annual sales. It's miles calculated by taking general annual fees, aside from depreciation and debt-related charges, and dividing it by the yearly gross income.

The current ratio, also known as the working capital ratio, gives a short view of an enterprise's financial health. You could calculate the current ratio by taking contemporary assets and dividing that discern by means of current liabilities. A ratio above 1 way current belongings exceed liabilities.

Learn more about business here: https://brainly.com/question/24448358

#SPJ4