When taking a look at companies and their fundamentals, you will usually end up on the balance sheet. Within the balance sheet, there is a section called current liabilities, what are and debts that the company must within twelve months. This line item could include any short term debts, any accrued liabilities, and accounts payable. Working capital is also derived using current liabilities, with the formula current assets minus current liabilities. There are also many different ratios out there that use current liabilities, such as the quick ratio and current ratio, which all tell us if the company can pay off their current liabilities effectively.