Question

percent of
Inventories comprise almost
Working Capital.
SA) 70%
(B) 80%
(C) 90%
(D) 100%​

Answer 1

Answer:

Generally, a working capital ratio of less than one is taken as indicative of potential future liquidity problems, while a ratio of 1.5 to two is interpreted as indicating a company on solid financial ground in terms of liquidity. An increasingly higher ratio above two is not necessarily considered to be better.