Working Capital to Current Liabilities helps calculating the Working Capital to Current Liabilities financial ratio. The ratio is one of the Liquidity Ratios, which test the firm's ability to meet its short-term financial obligations.
Liquidity ratios attempt to measure a company's ability to pay off its short-term debt obligations.
The Working Capital to Current Liabilities equals to the ratio between the working capital (Current Assests - Current Liabilities) and Current Liabilities.
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