The ratio s_that help in the analysis of working capital are:
A) current ratio
B) debt ratio
C) dividend yield
D) book value per share

Question

Quizplus · Accepted Answer

The current ratio is a key ratio used to analyze a company's working capital. It compares a company's current assets (such as cash and inventory) to its current liabilities (such as accounts payable). A higher current ratio indicates a company has more liquidity to cover its short-term obligations, which is important for effectively managing working capital. The other options (debt ratio, dividend yield, book value per share) are not directly related to working capital analysis.

The Ratio S_that Help in the Analysis of Working Capital