Series 6: 7.4.1.5.1. Measures Of Short-Term Financial Health

Taken from our Series 6 Top-off Online Guide

7.4.1.5.1. Measures of Short-Term Financial Health

  • Working capital—current assets minus current liabilities. This is not a ratio but a dollar amount used to assess a company’s ability to meet its short-term commitments. A positive number means the company’s current assets are greater than its current liabilities and that it can likely meet its short-term commitments. A negative number suggests that it cannot. The exam may refer to working capital as net current assets.
  • Current

Since you're reading about Series 6: 7.4.1.5.1. Measures Of Short-Term Financial Health, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 6
Please Enable Javascript
to view this content!