Jul 2, 2025 · The current ratio divides all of a company’s current assets by its current liabilities. The current ratio helps investors understand a company’s ability to cover its short-term debt and...

Dec 11, 2025 · Learn more about the current ratio, including how to calculate it, how it compares to other liquidity ratios and what’s considered a good current ratio for your business. What you’ll learn: …

Apr 18, 2024 · The formula to calculate the current ratio divides a company’s current assets by its current liabilities. Since the current ratio compares a company’s current assets to its current …

Current Ratio = Current Assets / Current Liabilities. If a business holds: Current assets = 15 + 20 + 25 = 60 million. Current liabilities = 15 + 15 = 30 million. Current ratio = 60 million / 30 million = 2.0x. The …

Jul 29, 2025 · Learn about the current ratio, how to calculate it, and what it says about your business’s liquidity and financial health.

Jun 8, 2023 · The first way to express the current ratio is to express it as a proportion (i.e., current liabilities to current assets). In this case, current liabilities are expressed as 1 and current assets are …

Sep 10, 2025 · You'd simply divide your company’s current assets by its current liabilities: Current ratio = Current assets / Current liabilities. Current assets include cash, inventory, and anything else a …

Jul 30, 2025 · Here, I’ve compiled detailed information on the current ratio equation, how to calculate the current ratio, and the advantages and disadvantages. Let’s dive in to explore more!

Dec 11, 2025 · Learn how to calculate and interpret the current ratio, what it reveals about financial health, and how Rho helps teams manage liquidity intelligently.

It's a simple ratio calculated by dividing a company's current assets by its current liabilities. Current assets include cash, accounts receivable, inventory, and any other assets expected to be converted …