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  1. 2 days 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,...

    • Jason Fernando
    • 1 min
  2. › finance › current-ratioCurrent Ratio Calculator

    Feb 9, 2024 · The value of the current ratio is calculated by dividing current assets by current liabilities. More precisely, the general formula for the current ratio is: current_ratio = current assets / current_liabilities Note that the value of the current ratio is stated in numeric format, not in percentage points.

  3. Dec 6, 2023 · The formula to calculate the current ratio divides a company’s current assets by its current liabilities. Current Ratio = Current Assets ÷ Current Liabilities Since the current ratio compares a company’s current assets to its current liabilities, the required inputs can be found on the balance sheet.

  4. Jul 8, 2022 · When you calculate a company's current ratio, the resulting number determines whether it's a good investment. A company with a current ratio of less than 1 has insufficient capital to meet...

    • Lydia Kibet
  5. Oct 12, 2022 · You can calculate the current ratio - also known as the current asset ratio - by dividing current assets by current liabilities. This is easy to set up on a balance sheet template using tools like Excel or Google Sheets. Remember to only include current assets and liabilities in your total - no long-term investments or debt.

  6. Apr 16, 2023 · The current ratio is a liquidity ratio that is used to calculate a company's ability to meet its short-term debt and obligations, or those due in a single year, using assets available on its balance sheet. It is also known as working capital ratio. A current ratio of one or more is preferred by investors.

  7. Nov 28, 2023 · The details below are an excerpt from ABC Limited’s balance sheet. We compute the company’s working capital ratio from the information below: Current assets = $100,000. Current liabilities = $25,000. As per the current ratio formula, Current Ratio = Current assets/ Current liabilities. = 100,000 / 25,000 = 4.

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