Tool Slick

Current Ratio Calculator

Current Ratio Calculator is a tool to determine a firm’s ability to pay off its short-term liabilities with its current assets

All processing happens on the client-side, locally in your browser. No data is uploaded.

Current assets amount
Current liabilities amount
Current Ratio
5.00 : 1

History

  • 2018-06-04Tool Launched

Background

What does Current Ratio mean?
The current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities. Potential creditors use the current ratio to measure a company's liquidity or ability to pay off short-term debts.
Formula
Current ratio = Current assets / Current liabilities
Example

Mr. Naga’s Shop sells ice-skating equipment to local hockey teams and $100,000 are his current liabilities and only $25,000 of current assets.

According to the formula, Current ratio is:-

  • = $25,000 / $100,000
  • = 0.25 or 25%