Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 35)
If a company wants to improve its working capital ratio, what should they focus on?
Increasing their long-term debt.
Decreasing their current assets.
Increasing their current assets relative to current liabilities.
Increasing their equity.
Explication
Improving working capital involves managing the relationship between current assets and current liabilities.