“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...

Discover how the working ratio reveals a company's ability to cover operating costs from revenue, learn the calculation method, and understand its limitations.

Union Pacific (NYSE:UNP) reported a profit beat and an operating ratio improvement of more than 100 basis points in the third quarter, which overshadowed the railroad operator's slight revenue miss.