Current Liabilities To Net Worth Ratio - Formula - Example - Current Liabilities / Net Worth
What is Current Liabilities To Net Worth Ratio This ratio shows the relationship between amounts due to the Accounts Payable and Equity of the business within the Current Accounting Period.aricle In words, we can say that Current Liabilities Divided By Net Worth Multiplied By 100. Mathematically, we can write the Formula of this ratio as: Current Liabilities / Net Worth x 100 This ratio shows in Percentage (%) measurement. Here Net Worth is calculated according to Accounting Equation and it is the Difference Between Total Assets - Total Current Liabilities within the Current Accounting Period. You may also be interested in Types of Financial Ratios And Their Formulas Importance of Current Liabilities To Net Worth Ratio 1. The entrepreneur s use the resources provided by the Accounts Payable (Creditors) and Owners o...