Current ratio

What is Current ratio?

Current ratio counts as Total current assets, divided into Total current liabilities. Note: if the denominator is negative, the result will be empty.

Formula:

Total current assets / Total current liabilities

What does Current ratio mean?

It reflects a company's ability to pay short-term obligations during the period. It can be an indicator of how a company can maximize current assets on its balance sheet in order to cover current debt.

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