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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