# Working capital 正負值問題

(一) 如果我想計Working capital

assets係正值(A), liabilities係負值(-B)

(i) A-B

IF 係(ii) 咪即係assets + liabilities? 因為liabilities實係負傢啵~~help!!

&amp;&amp;

(二) 再如果又有另一個variable係要equity/ total liabilities

equity係正值(C), total liabilities係負值(-D)

(i) C/D

Rating

A ratio usually means the multiplier of an amount to another amount not concerning the positive or negative sign. It is the terms that matter.

Working capital is the ability of the company to pay off its current liabilities with its current assets. The short-term, usually within a year, financing of the company. So, the formula is A - B.

The total liabilities is usually in credit with its sum of current liabilities + long-term liabilities. Equity / Total Liabilities measures the multiplier coverage of financial safety the company could meet the creditors for the balances due to them with its shareholders' funds. So, the formula is C/D. the bigger the figure, the safer the creditors will feel on the company's financial obligation.

• Rex
Lv 5