✖Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.ⓘ Current Assets [CA]			+10% -10%
✖Current Liabilities are the company debts or obligations that are due within one year.ⓘ Current Liabilities [CL]			+10% -10%

✖The Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations.ⓘ Business Current Ratio [CR]

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Formula

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Business Current Ratio

Formula

`"CR" = "CA"/"CL"`

Example

`"2.65"="79500"/"30000"`

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Business Current Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Current Ratio = Current Assets/Current Liabilities
CR = CA/CL
This formula uses 3 Variables

Variables Used

Current Ratio - The Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations.
Current Assets - Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.
Current Liabilities - Current Liabilities are the company debts or obligations that are due within one year.

STEP 1: Convert Input(s) to Base Unit

Current Assets: 79500 --> No Conversion Required
Current Liabilities: 30000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CR = CA/CL --> 79500/30000

Evaluating ... ...

CR = 2.65

STEP 3: Convert Result to Output's Unit

2.65 --> No Conversion Required

FINAL ANSWER

2.65 <-- Current Ratio

(Calculation completed in 00.004 seconds)

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< 6 Liquidity Ratios Calculators

Business Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Cash Ratio

Go Cash Ratio = (Cash and Cash Equivalents/Current Liabilities)

Business Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Average Collection Period using Receivables Turnover

Go Average Collection Period = 365/Receivables Turnover Ratio

< 22 Important Formulas of Financial Ratios Calculators

Fixed Charge Coverage Ratio

Go Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)

Free Cash Flow to Firm

Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Average Collection Period

Go Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)

Revenue Growth Rate

Go Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100

Sales Growth Rate

Go Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100

Business Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Interest Coverage Ratio

Go Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expense

Debt to Equity Ratio

Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Receivables Turnover Ratio

Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables

Free Cash Flow

Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Fixed Asset Turnover Ratio

Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets

Equity Multiplier

Go Equity Multiplier = Total Assets/Total Shareholders' Equity

Inventory Turnover Ratio

Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Sales to Receivables Ratio

Go Sales to Receivables Ratio = Net Sales/Net Receivables

Debt to Assets Ratio

Go Debt to Assets Ratio = Total Liabilities/Total Assets

Business Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Total Asset Turnover

Go Total Asset Turnover = Sales/Total Assets

Business Current Ratio Formula

Current Ratio = Current Assets/Current Liabilities
CR = CA/CL

How to Calculate Business Current Ratio?

Business Current Ratio calculator uses Current Ratio = Current Assets/Current Liabilities to calculate the Current Ratio, Business Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations. Current Ratio is denoted by CR symbol.

How to calculate Business Current Ratio using this online calculator? To use this online calculator for Business Current Ratio, enter Current Assets (CA) & Current Liabilities (CL) and hit the calculate button. Here is how the Business Current Ratio calculation can be explained with given input values -> 2.65 = 79500/30000.

FAQ

What is Business Current Ratio?

Business Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations and is represented as CR = CA/CL or Current Ratio = Current Assets/Current Liabilities. Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year & Current Liabilities are the company debts or obligations that are due within one year.

How to calculate Business Current Ratio?

Business Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations is calculated using Current Ratio = Current Assets/Current Liabilities. To calculate Business Current Ratio, you need Current Assets (CA) & Current Liabilities (CL). With our tool, you need to enter the respective value for Current Assets & Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Current Ratio?

In this formula, Current Ratio uses Current Assets & Current Liabilities. We can use 2 other way(s) to calculate the same, which is/are as follows -

Current Ratio = Current Assets/Current Liabilities
Current Ratio = Current Assets/Current Liabilities

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