Current Ratio Calculator

Written by CFI Team

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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:

Current Ratio Calculator

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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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