Working Ratio Definition

Below please find a definition of “Working Ratio”

Financial Analysis Training & Glossary TermsWorking Ratio: Working ratio is calculated by dividing a company’s annual expenses by its annual revenues. A company’s working ratio is a measure of a company’s ability to cover its expenses. If a company has a working ratio of 1 or less than 1 that implies that the company has the ability to cover its expenses. On the other hand a company with a working ratio of more than 1 has less chances of covering its expenses.

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on http://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Define working ration, Working ratio definition, Working ratio examples, Meaning of working ratio, What is working ratio?, Working ratio depreciation, Working ratio analysis

About Richard Wilson