A good working capital ratio, typically ranging from 1.2 to 2, indicates that a company can easily cover its short-term liabilities with its short-term assets, reflecting financial health and operational efficiency. Ratios below 1 suggest potential liquidity issues, while those significantly above 2 may indicate inefficient use of resources. Maintaining an optimal ratio is crucial for ensuring smooth operations and financial stability.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
