acid-test ratio

Hit or Miss: Is Your Working Capital On-Target?

Working capital equals the difference between current assets and current liabilities. Organizations need a certain amount of working capital to run their operations smoothly. The optimal (or “target”) amount of…

Manage Your Working Capital More Efficiently

Working capital is the difference between a company’s current assets and current liabilities. For a business to thrive, its working capital must be greater than zero. A positive balance enables…