Working Capital Ratio is a financial measure of a company’s short-term liquidity. It is calculated by dividing the current assets minus the current liabilities, or working capital, by the current liabilities. This ratio indicates whether a business has enough liquid assets to cover its short-term obligations and other financial commitments. Companies with high Working Capital Ratios have higher levels of liquidity and better quality of operations than companies with lower Working Capital Ratios. Keeping track of your Working Capital Ratio will help you ensure that your business remains well-funded and running smoothly.