CR

Current Ratio Calculator

Compares current assets with current liabilities to show whether short-term debts are covered.

Business & TaxRuns in your browser

Result…

$

Cash, receivables, inventory and other assets due within a year.

$

Debts and bills due within a year.

 

…

How it's calculated

Current ratio = current assets ÷ current liabilities

A ratio above 1 means current assets cover short-term debts. Very high ratios can mean cash or stock sitting idle. Norms vary by industry, and inventory counts in full here even if it is slow to sell; the quick ratio leaves it out.

Your numbers, step by step

    More in Business & Tax