Current Ratio Calculator
The current ratio is a popular metric also known as a liquidity ratio or a working capital ratio is used to measures the capability of a business.
The current ratio is measured by dividing your current assets by your current liabilities.
It is also used to measures a company's ability to pay current, or short-term, liabilities with its current, or short-term, assets.
What is the Formula for the Current Ratio Calculator?
The given below the current ratio formula can be used to easily find the company’s liquidity.
Current ratio = Current Assets / Current Liabilities
If a business holds current assets of 70 million and current liabilities of 35 million then find the current ratio of the business.
Current assets = 70 million
Current liabilities = 35 million
Current Ratio = ?
Current ratio = current assets / current liabilities
Current Ratio = 70 / 35 = 2 million
Our current ratio calculator is used to measure the company’s ability by dividing the current assets to current liabilities more ever you can understand it easily with help of the formula, definition, and example given above our calculator.