The current ratio is a financial metric that measures a company's ability to pay short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. A higher ratio indicates better liquidity and financial health, while a ratio below 1 may signal potential cash flow issues.
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It is the ratio of a firm's current assets to its current liabilities, Current AssetsCurrent Liabilities. The current ratio is an indication of a firm's accounting liquidity.
The current ratio is a financial metric used to evaluate a business's ability to pay off its short-term liabilities with its short-term assets. To calculate the current ratio, divide the business's current assets by its current liabilities.
