Investment Glossary · Quick read · No ads
Current Ratio
The short answer
A liquidity ratio measuring a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.
What is Current Ratio?
A liquidity ratio measuring a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
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