Current Ratio Calculator
Calculate your company’s current ratio to measure short-term liquidity and financial health. Understand how current assets and liabilities affect your business stability.
Step 1: Current Assets
Understanding Current Assets
Current assets are all assets that can be converted into cash within one year. This includes cash, accounts receivable, inventory, and other short-term assets.
Step 2: Current Liabilities
About Current Ratio
The current ratio measures a company’s ability to pay short-term obligations with current assets. A ratio above 1.5 is generally considered healthy, while below 1 may indicate liquidity problems.
Current Ratio Results
Current Ratio
Industry Current Ratio Comparison
| Industry | Average Current Ratio | Your Ratio | Comparison | Risk Level |
|---|
Financial Health Analysis
Current Ratio Formula
Current Ratio = Current Assets ÷ Current Liabilities
The current ratio is calculated by dividing total current assets by total current liabilities. A ratio above 1 indicates the company has more assets than liabilities, while below 1 suggests potential liquidity issues. Industry standards vary, with retailers typically having lower ratios than manufacturers.
Need Financial Analysis?
Connect with our certified financial experts for professional business analysis, liquidity assessment, and personalized financial advice for your company’s needs.
Get Professional Consultation