Financial Performance
Current Assets to Current Liabilities
The working capital ratio measures a company's ability to pay its short-term obligations with its short-term assets. A ratio above 1.0 means current assets exceed current liabilities.
Why It Matters
A ratio below 1.0 means the company may struggle to pay bills. Too high means excess cash is sitting idle. The sweet spot depends on the industry and business model.
How Novastra Helps
Novastra optimizes working capital by managing inventory levels, negotiating payment terms, and improving receivables collection.
Current Assets / Current Liabilities
Framework Phase
3
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