Current Ratio

Current Ratio Calculation







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Current ratio formula & calculator to find the ratio between current assets to current liabilities of a company. It is a financial liquidity assessment tool used by the investors to measure the ability of a company to deal with the following year short term debt obligations. It is also known as working capital ratio. The higher current ratio usually greater than 1 generally a good sign indicates that the company has more strength of financial liquidity through its productions to deal the short term debt obligations and a lower working capital ratio usually less than 1 indicates that the company may face financial liquidity issues.

Formula
Current Ratio = Current Assets/Current Liabilities