In this formula, Current Assets include cash, accounts receivable, inventory, and other assets expected to be converted into cash within a year. Current Liabilities include short-term debt ...

Rate of Return on Assets Formula The formula to calculate corporate ... The first is by adding current assets and noncurrent ...

A higher current ratio is favorable as it represents the number of times current assets can cover current liabilities. However, one that's too high might indicate that a company isn't utilizing ...

The formula for working capital is: Working Capital = Current Assets - Current Liabilities Current assets are those that a company reasonably expects to convert into cash within one year.