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1. ### www.investopedia.com › terms › cCurrent Ratio Explained With Formula and Examples - Investopedia

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
• 1 min
• Director
2. ### corporatefinanceinstitute.com › resourcesCurrent Ratio Formula - Examples, How to Calculate Current Ratio

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 million

3. ### www.wallstreetmojo.com › current-ratioCurrent Ratio - Meaning, Interpretation, Formula, Calculate

Current 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.

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5. ### en.wikipedia.org › wiki › Current_ratioCurrent ratio - Wikipedia

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.  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 ...

6. ### www.businessinsider.com › current-ratioCurrent Ratio: Definition, Formula, Example - Business Insider

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
7. ### www.thebalancemoney.com › what-is-the-currentWhat Is the Current Ratio? - The Balance Small Business

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.

1. ### Searches related to current ratio

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