Current Ratio

Indicator of company's ability to pay short-term obligations; calculated by dividing current assets by current liabilities.


Current Ratio is useful for comparing companies within the same industry. The higher the ratio, the more liquid the company.

Also known as liquidity ratio, cash asset ratio, and cash ratio.




The Dynamic Current Ratio - Learn why this ratio may be a good alternative to the current, cash, and quick ratios.

Introduction to Fundamental Analysis - Here's an easy-to-understand tutorial on the techniques of analyzing a company's financial statements, including the annual and quarterly reports, the auditor's report, and much more.
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