Current ratio
What is Current ratio?
Current ratio counts as Total current assets, divided into Total current liabilities. Note: if the denominator is negative, the result will be empty.
Formula:
Total current assets / Total current liabilities
What does Current ratio mean?
It reflects a company's ability to pay short-term obligations during the period. It can be an indicator of how a company can maximize current assets on its balance sheet in order to cover current debt.