Compute Working Capital and The Current Ratio are two of the most important tools in a business’s toolbox. They measure a company’s financial health by looking at how much liquid assets it has on hand, as well as how it manages its current liabilities. Compute Working Capital measures the difference between a company’s short-term assets and its short-term liabilities. This is expressed as a simple ratio that indicates whether a company is able to cover its short-term debt obligations using only existing assets. The Current Ratio, meanwhile, measures a company’s ability to meet its immediate financial obligations by comparing its total current assets to its total current liabilities. Both computations enable businesses to gauge their financial agility and stability, giving them insight into their ability to pay for upcoming expenses and stay afloat in difficult times.