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 Ratio:
..
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%
 
Created: Jun 4, 2018
Online Tool Designed For: Windows, OS X, Android, iOS, Linux