
Current Ratio Explained With Formula and Examples - Investopedia
Jul 2, 2025 · Public companies don't report their current ratio, though all the information needed to calculate the it is contained in the company's financial statements. To calculate the ratio, compare...
Current Ratio Formula - Corporate Finance Institute
Current Ratio = Current Assets / Current Liabilities. If a business holds: Current assets = 15 + 20 + 25 = 60 million. Current liabilities = 15 + 15 = 30 million. Current ratio = 60 million / 30 million = 2.0x. The …
Current ratio: Formula, examples, and why it matters | Xero US
Dec 17, 2025 · Calculate your current ratio by dividing current assets by current liabilities to determine if your business can cover short-term debts, with a ratio above 1.0 indicating you have sufficient assets …
Current Ratio | Formula + Calculator - Wall Street Prep
Apr 18, 2024 · The current ratio formula is the current assets of a company divided by its current liabilities. A current ratio of around 1.5x to 3.0x is considered to be healthy, whereas a current ratio …
How to Calculate & Use Current Ratio (with Examples)
Sep 10, 2025 · Current ratio = Current assets / Current liabilities. Current assets include cash, inventory, and anything else a company expects to convert to cash within 12 months. Current liabilities cover …
Current Ratio: Definition, Example & How to Calculate It
Dec 11, 2025 · To calculate the current ratio, the formula looks like this: Current Ratio = Current Assets / Current Liabilities.
Current Ratio Explained With Formula and Examples (2025)
1 day 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, inventory, …
Current Ratio: Formula, Definition, and Examples - Career Principles
The current ratio formula is: Current Ratio = Current Assets / Current Liabilities. The current ratio is a liquidity ratio. Liquidity refers to how quickly a company can convert its assets into cash without …
Current Ratio - Formula, Example, and Interpretation
Current ratio = Current assets ÷ Current liabilities. Current assets include cash and cash equivalents, marketable securities, short-term receivables, inventories, and prepayments. Current liabilities …
Current Ratio Formula - Current Ratio, Examples & Differences
Jul 30, 2025 · Now, you should divide current assets by current liabilities using the formula to calculate the current ratio. Current Ratio Formula = Current Assets/Current Liabilities