Current Ratio
Current Ratio=Current AssetsCurrent Liabilities
Current Assets | ||
Current Liabilities | ||
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UUID | ee80f0d3-0db7-11e4-b7aa-bc764e2038f2 |
The current ratio equation provides a calculable means for determining a company's liquidity in the short term. It is also known as the liquidity ratio, cash asset ratio, and cash ratio. The higher the current ratio, the higher the company's capability to pay its short-term obligations.
This equation, Current Ratio, is used in 1 page
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