Current Ratio Calculator

Updated: Jun 4, 2018

FINANCE COMPANY

Current Ratio Calculator is a tool to determine a firm’s ability to pay off its short-term liabilities with its current assets

Current Assets

Current Liabilities

Current Ratio:

..

Background Information

What does Current Ratio mean?: The current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities. Potential creditors use the current ratio to measure a company's liquidity or ability to pay off short-term debts.

Formula: Current ratio = Current assets / Current liabilities

Example

Mr. Naga’s Shop sells ice-skating equipment to local hockey teams and $100,000 are his current liabilities and only $25,000 of current assets.

According to the formula, Current ratio is:-

= $25,000 / $100,000
= 0.25 or 25%

Comments

History

Jun 4, 2018: Tool Launched

Created: Jun 4, 2018

Online Tool Designed For: Windows, OS X, Android, iOS, Linux