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Ratios, Financial Tool
 
Hi
what is working capital ratio? and how companies can manipulate it?
 
one more question, What will cause a change in net working capital?
 
Net working capital or working capital is defined as current assets minus current liabilities. Therefore, a change in the total amount of current assets without a change of the same amount in current liabilities will result in a change in the amount of working capital. Similarly, a change in the total amount of current liabilities without an identical change in the total amount of current assets will cause a change in working capital.
so by adjusting assets in current and non current assets Working Capital ratio can be manipulated.
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