For Below Ratio, name which grouping of ratio it fits into, what the equation is, what it means, and what is ideal state:
Working Capital Ratio
=Revenue/ Average Working Capital
=Workign Capital =(Current Assets - Current Liabilities)
Gives info about how much of reveneu is tied up in working capital. Firms have low working capital, if payables exceed inventory and receivbales In this case this ratio will be very large, and is less informative about changes in firms operating efficinecy.