Current Ratio

Current Ratio Calculator

Measures a company’s ability to pay short-term obligations with current assets

?Cash, inventory, receivables, and other assets convertible to cash within 1 year
?Debts and obligations due within 1 year

Liquidity Analysis

0.00
Current Assets / Current Liabilities
Risk Caution Healthy Conservative

Interpretation:

The current ratio indicates whether current assets can cover current liabilities.

Industry Standards:

  • Below 1.0: Potential liquidity problems
  • 1.0-1.5: Minimum acceptable range
  • 1.5-3.0: Generally healthy
  • Above 3.0: Possible inefficient asset use