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Working Capital and Liquidity- Analysis and Ratios

Working capital and liquidity are to near-term fiscal health of a business what capital structure and solvency are to its long-term financial foundation.


In this category, we cover all the important ratios, analyses and graphs relevant to gauge the working-capital and liquidity management and efficiency.


Working Capital, often also called Net Working Capital, is current assets- comprised of cash, debtor, inventory and other current assets- minus current liabilities, which is comprised of accounts or payable, income tax payable, short-term debt and other current liabilities. All these components have been expressed in terms of number of days of sales.


Listed alongside are all the working capital and liquidity ratios, analyses and graphs skimmed from financials (e.g. financial statements comprising balance sheet, income statement or profit & loss account) of listed companies across the globe.