
Current Ratio Explained With Formula and Examples
Jul 2, 2025 · Public companies don't report their current ratio, though all the information needed to calculate the it is contained in the company's financial statements. To calculate the ratio, compare...
Current Ratio Formula - Corporate Finance Institute
Current Ratio = Current Assets / Current Liabilities. If a business holds: Current assets = 15 + 20 + 25 = 60 million. Current liabilities = 15 + 15 = 30 million. Current ratio = 60 million / 30 million = 2.0x. …
Current Ratio - Definition, Explanation, Formula, Example and ...
Jul 11, 2023 · Current ratio is computed by dividing total current assets by total current liabilities of the business. This relationship can be expressed in the form of following formula or equation: Above …
Current Ratio | Formula + Calculator - Wall Street Prep
Apr 18, 2024 · The current ratio formula is the current assets of a company divided by its current liabilities. A current ratio of around 1.5x to 3.0x is considered to be healthy, whereas a current ratio …
Current Ratio: Calculation and Uses - Investing.com
Jul 18, 2025 · To calculate the Current Ratio, use the following formula: Current Ratio = Current Assets / Current Liabilities
Current Ratio | Formula, Calculation, and Example
Jun 8, 2023 · The current ratio or working capital ratio is a ratio of current assets to current liabilities within a business. In other words, it is defined as the total current assets divided by the total …
Current Ratio Formula - Current Ratio, Examples & Differences
Jul 30, 2025 · Now, you should divide current assets by current liabilities using the formula to calculate the current ratio. Current Ratio Formula = Current Assets/Current Liabilities
Current Ratio Explained With Formula and Examples
Jan 24, 2026 · A current ratio above 1 indicates a healthy liquidity position, while a ratio below 1 suggests potential financial risk. Ideal current ratios typically range from 1.5 to 3.0, but these values …
Current Ratio Explained With Formula and Examples (2026)
1 day ago · To calculate the ratio, analysts compare a company’s current assets to its current liabilities. Current assets listed on a company’s balance sheet include cash, accounts receivable, inventory, …
Current Ratio - Formula, Example, and Interpretation
What is Current Ratio? The current ratio is one of the most common measures of liquidity. It refers to the ratio of current assets to current liabilities. Current Ratio Formula The formula for current ratio is: …