James Chen, CMT is an expert trader, investment adviser, and global market strategist. Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic ...

Many ratios help analysts measure how efficiently a firm is paying its bills, collecting cash from customers, and turning inventory into sales. Two of the most important are accounts receivable and ...

data is drawn directly from the company’s balance sheet. The formula for the net working capital ratio is: Net Working Capital Ratio = Current Assets ÷ Current Liabilities Example: If a ...