The Working Capital Ratio is a key metric for assessing a company's liquidity, indicating its ability to meet short-term obligations. 

It's calculated by dividing current assets by current liabilities. 

A ratio of 1 suggests potential liquidity issues, possibly temporary, while a ratio of 2 or higher indicates strong liquidity. However, a high ratio can also imply excessive short-term assets, which might be more effectively utilized in investments or paying dividends. 

For instance, if a company has $8 million in current assets and $4 million in current liabilities, its working capital ratio is 2, reflecting healthy short-term liquidity.