Latest Free Templates

Wednesday, April 6, 2011

Current Ratio Formula & Example

Definition: Current ratio (also known as working capital ratio) is the ratio of current assets of a company to its current liabilities. It is used to assess the working capital of a firm.

Current ratio = Current Assets / Current Liabilities

* Current assets are the assets which can either be converted to cash or used to pay current liabilities within one year. Current liabilities are


Post a Comment