How to Use the Current Assets Formula to Manage Your Business

Published: 16 January 2020
on channel: Fundera by NerdWallet
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Learn how the current assets formula works, and why you need to understand your business’s current assets. Having a grasp on your current assets helps you understand how well your business can weather fluctuations in revenue, and if you’re in danger of not having enough cash flow to continue operating. Use this calculation on your balance sheet and know exactly what you need to do to keep your business going. For our complete guide, visit: http://bit.ly/2FS3bVX

Our video covers:

The current assets formula (0:39)

Current assets formula example (1:43)

Other calculations based on the current assets formula (2:59)

Current ratio formula (3:10)
Quick ratio formula (3:35)
Net working capital formula (4:18)

How to manage your current assets (4:31)

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