Current Ratio Calculator
Current Ratio Calculator
This Current Ratio Calculator will help you calculate the current ratio given the sum of all current assets and current liabilities. The current ratio is a key liquidity ratio that measures the ability of the company to cover its short-term liabilities.
Here is a snippet of the current ratio calculator template:
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Current Ratio formula
The Current Ratio formula is:
Current Ratio = Current Assets / Current Liabilities
Why Use the Current Ratio?
The current ratio assesses the operations of a company and how financially solid the company is in relation to its outstanding debt. Knowing this ratio can be vital for the decision-making of creditors, investors, and suppliers of a company. When it comes to these stakeholders, the current ratio is an important tool to aid them in their business decision.
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