Question: What is the difference between the current ratio and the working capital ratio? I know that the current ratio is (current assets/current liabilities), but what
What is the difference between the current ratio and the working capital ratio? I know that the current ratio is (current assets/current liabilities), but what is the formula for the working capital ratio? People explain it as if they are the same thing, but they aren't. They always refer to the working capital ratio as the current ratio. I need both for my assignment, but I can't find a formula yet. Please help!
I had asked someone to answer this for me, but it wasn't what I wanted. They explained it to me as if they are both (Current Assets/Current Liabilities). People always incorrectly refer to it as the same. There are subtle differences between the two, which is what I'm looking for. My teacher wouldn't ask me to give her two of the same answers.
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