Working capital management focuses on managing each of the firm's current assets and current liabilities in a manner that positively contributes to the firm's value. Net working capital is the difference between current assets and current liabilities. Risk, in the context of short-term financial decisions, is the probability that a firm will be unable to pay its bills as they come due. Assuming a constant level of total assets, the higher a firm's ratio of current assets to total assets, the less profitable the firm and the less risky it is. The converse is also true. With constant total assets, the higher a firm's ratio of current liabilities to total assets, the more profitable and the more risky the firm is.