Working capital is the capital of the business used for day to day trading operations.
Dec 25 2013 12:12 PM
working capital= Current assets – current liabilities
Debt- Equity ratio is the measure of the company’s financial leverage calculated by dividing its total liabilities by shareholders equity.Ideal Debt/ Equity ratio is 2:1.
Debt/Equity ratio=Toatl liabilities/Shareholders equity.