Current Ratio Formula + Calculator

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Guides, how-tos, and tips on managing your business finances

It takes all of your company’s current assets, compares them to your short-term liabilities, and tells you whether you have enough of the former to pay for the latter.
CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation.
The current ratio (also known as the current asset ratio, the current liquidity ratio, or the working capital ratio) is a financial analysis tool used to determine the short-term liquidity of a business.
The current ratio demonstrates your firm’s ability to pay its dues on time.