Current Ratio

The Current Ratio calculator computes a liquidity ratio that measures the ability to pay short-term liabilities.

INSTRUCTIONS: Choose units and enter the following:

• (CA) Current Assets
• (CL) Current Liabilities

Current Ratio (CR): The ratio is returned as a real number. 

The Math / Science

The Current Ratio equation is a liquidity ratio that measures the ability to pay short-term liabilities.

Current Ratio = Current Assets / Current Liabilities

The Accounting Ratio Calculator provides numerous standard equations used in business accounting, including the following:

• Best Possible Days Sales Outstanding - gives useful insight into delinquencies, as it considers only Current Receivables.
• Current Ratio - A liquidity ratio that measures the ability to pay short-term liabilities.
• Days Sales Outstanding - tests the efficiency of the conversion of receivables into cash.
• Debt to Equity Ratio - measures how a company is leveraging its debt against the resources of its owners.
• Inventory Turnover Ratio - reveals how many times inventory turns over in a period
• Net Cash Flow from Operations - Net income - Increase in Receivables + Increase in Payables.
• Quick Assets - cash and assets that can be converted quickly to cash
• Quick Ratio (aka Acid Test) - measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash
• Stockholder's Equity - sum of Common Stock at Par, Premium on Common Stock, Preferred Stock at Par, Premium on Preferred Stock and Retained Earnings