Current Ratio Calculator

✖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.ⓘ Current Ratio [CR]

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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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Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

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< Liquidity Ratios Calculators

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

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LaTeX Go Current Ratio = Current Assets/Current Liabilities

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LaTeX Go Current Ratio = Current Assets/Current Liabilities

Average Collection Period using Receivables Turnover

LaTeX Go Average Collection Period = 365/Receivables Turnover Ratio

< Important Formulas of Financial Ratios Calculators

Free Cash Flow to Firm

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

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

Free Cash Flow

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

Debt to Assets Ratio

LaTeX Go Debt to Assets Ratio = Total Liabilities/Total Assets

Current Ratio Formula

LaTeX Go

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

How to Calculate Current Ratio?

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

FAQ

What is Current Ratio?

The 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 Current Ratio?

The 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 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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