Jul 11, 2022 · The current

**ratio**is a liquidity**ratio**that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize...- Jason Fernando
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Nov 26, 2022 · The Current

**Ratio**formula is: Current**Ratio**= Current Assets / Current Liabilities Example of the Current**Ratio**Formula If a business holds: Cash = $15 million Marketable securities = $20 million Inventory = $25 million Short-term debt = $15 million Accounts payables = $15 million Current assets = 15 + 20 + 25 = 60 millionCurrent

**Ratio**Formula = Current Assets / Current Liablities. If, for a company, current assets are $200 million and current liability is $100 million, then the**ratio**will be = $200/$100 = 2.0. Interpretation of Current Ratios If Current Assets > Current Liabilities, then**Ratio**is greater than 1.0 -> a desirable situation to be in.People also ask

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Current

**ratio**= Current Assets/Current Liabilities. The current**ratio**is an indication of a firm's liquidity. Acceptable current ratios vary from industry to industry. [1] In many cases, a creditor would consider a high current**ratio**to be better than a low current**ratio**, because a high current**ratio**indicates that the company is more likely to ...Jul 8, 2022 · The current

**ratio**measures a company's capacity to pay its short-term liabilities due in one year. The current**ratio**weighs up all of a company's current assets to its current liabilities....- Lydia Kibet

Jul 24, 2020 · The current

**ratio**is used to evaluate a company's ability to pay its short-term obligations—those that come due within a year. The current**ratio**is calculated by dividing a company's current assets by its current liabilities. The higher the resulting figure, the more short-term liquidity the company has.