How do you calculate the working capital ratio if current assets are $30,000 and current liabilities are $15,000?

To determine the working capital ratio, also known as the current ratio, you divide the total current assets by the total current liabilities. In this case, current assets amount to $30,000, while current liabilities total $15,000.

The calculation would be as follows:

Working Capital Ratio = Current Assets / Current Liabilities Working Capital Ratio = $30,000 / $15,000 Working Capital Ratio = 2

This result indicates that there are twice as many current assets available to cover current liabilities, suggesting a strong liquidity position for the business. Therefore, the correct answer is indeed indicative of a ratio of 2.