Understand what the current ratio measures, why it matters, and how to use it to assess and improve short-term liquidity.

The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency. It’s important to keep in mind that the current ...

Publicly traded corporations are required to publish quarterly balance sheets that allow shareholders to compare a company’s assets with its liabilities. It’s also a good practice for private ...

Current ratio is a measure of liquidity, which compares a company's current assets with its current liabilities. Current ratio is a favored test among banks and lenders because it reveals whether a ...

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A current ratio is an accounting formula that defines a company's ability to meet its immediate and short-term obligations. The current ratio, sometimes called the liquidity ratio or the working ...

These are examples of assets not normally easily disposed of. Key Takeaway: Formally, if an asset isn't expected to be cashable within a year, it isn’t considered a current asset. In business, a ...