This was achieved by means of strict cash management and a further improvement in the working capital ratio
to minus 2.
Further, the table reveals that the net working capital ratio
remained fluctuating during the period of study.
Let DWCR represent the difference between the specific working capital ratio
The common measures of liquidity are: Current ratio, Quick ratio, Cash ratio, Net Working Capital (NWC) and Net Working Capital ratio
While revenue was increasing, the company's working capital ratio
dropped by 7%, a big improvement over the previous year.
Inventory in the third quarter was at a similar level compared to the second quarter, and the Company's working capital ratio
improved from 178% in the second quarter to 212% in the third quarter.
46 Weighted-average common and dilutive potential common shares outstanding 67,860 67,595 67,644 67,557 Pro forma working capital ratio
As of December 31, 2005 Net sales reported $6,620,099 Unilin 10 month net sales 993,407 Pro forma net sales $7,613,506 Net working capital $1,342,382 Working capital ratio
It is a widely held view that an acceptable working capital ratio
is two-to-one, or twice as much current assets as liabilities.
The key is to ensure a positive working capital ratio
, because a negative ratio is a signal for a business that is heading for financial difficulties.
Current ratio, sometimes referred to as working capital ratio
, compares current assets to current liabilities.
The latter programme puts the company in a position to improve its forecast for its working capital ratio
in 2014 to under 5% of sales, a level it expects to sustain going forward.
The company continues to maintain a debt-free position and a strong working capital ratio