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Current Ratio Calculator

LAST UPDATE: August 24th, 2018

Calculator

What is the Current Ratio?

The Current Ratio is a ratio of a company’s current assets to current liabilities.

A current ratio of ‘1’ means that the company has the same amount of current assets and current liabilities.

A current ratio of more than ‘1’ means that the company has more current assets than current liabilities. A current ratio of ‘2’ means that there are twice as many current assets.

A current ratio of less than ‘1’ means that the company has more current liabilities. A current ratio of ‘0.5’ means that there are twice as many current liabilities.

Formula

Current Ratio = Current Assets / Current Liabilities

Example

A company has current assets of $10,000 and current liabilities of $5,000.

Current ratio = $10,000 / $5,000 = 2.00

Therefore, this company’s current ratio is 2.00.

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