Slide 10-6 Evaluating Liquidity An important indicator of a company ability to meet its current obligations. Two commonly used measures Working Capital Current Assets -Current Liabilities Current Ratio Current Assets ? Current Liabilities Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999?The McGraw-Hill Companies, Inc., 1999 Slide 10-6 Irwin/McGraw-Hill Evaluating Liquidity Current Ratio = Current Assets ?Current Liabilities Working Capital = Current Assets - Current Liabilities An important indicator of a company抯 ability to meet its current obligations. Two commonly used measures: