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Working capital. Working capital ( WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital is equal to current assets.
Cash and cash equivalents ( CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". [1] An investment normally counts as a cash equivalent when it has a short maturity period of 90 days or less, and can ...
Intel (INTC) at year-end 2023 had $43.27 billion in current assets and $28.05 billion in current liabilities, for a high 1.54 current ratio. What is a good current ratio? The ideal current ratio ...
Typical current assets include cash, cash equivalents, short-term investments which in the ordinary activity are mainly related to non-strategic companies in the process of being sold (usually as a result of private negotiations), accounts receivable, stock inventory, supplies, and the portion of prepaid liabilities (sometimes referred to as ...
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows:-. The current ratio is an indication of a firm's liquidity. Acceptable current ratios vary from industry to industry. [1]
The current ratio is current assets/current liabilities and measures how much liquidity is available to pay for liabilities. The liquidity index shows how quickly a company can turn assets into cash and is calculated by: (Trade receivables x Days to liquidate) + (Inventory x Days to liquidate)/Trade Receivables + Inventory.
Let’s say your company had $7,000 in inventory last quarter but has $5,000 in inventory now. To find the net change, you subtract the previous period’s value ($7,000) from the current value ...
A normal liquid ratio is considered to be 1:1. A company with a quick ratio of less than 1 cannot currently fully pay back its current liabilities. The quick ratio is similar to the current ratio but provides a more conservative assessment of the liquidity position of firms as it excludes inventory, which it does not consider as sufficiently ...