We have noted the error and will address it soon. Send us a feedback with your email address if you want to be notified.
Some text in the modal.
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.
Current ratio = Current assets / Current liabilities
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.