Working Capital Ratio

Current Assets-Current Liabilities.

This ratio measures the short-term bill paying ability of a company. The higher the ratio is, the more likely the company will be able to pay the bills that come due this year. If a company has current assets of $4000 and current liabilities of $2000, their current ratio is 2 ($4000/$2000).

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/working-capital-ratio/