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

Example

If a business holds current assets of 70 million and current liabilities of 35 million then find the current ratio of the business.

Given data

Current assets = 70 million
Current liabilities  = 35 million

To find,

Current Ratio = ?

we know,

Current ratio = current assets / current liabilities

Solution

Current Ratio = 70 / 35 = 2 million

Calculator use

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.