Calculate current ratio for liquidity analysis.
Cash, bank deposits, short-term investments
Money owed by customers
Raw materials, work-in-progress, finished goods
Prepaid expenses, short-term investments
Money owed to suppliers
Loans due within one year
Wages, taxes, interest payable
Deferred revenue, other short-term obligations
Current ratio measures a company's ability to pay short-term obligations.
Higher ratios indicate better liquidity, but too high may suggest inefficient use of assets.
Industry benchmarks vary significantly across sectors.
Current Ratio
liquidity
Rating:
Interpretation:
Key Insights:
Below 1.0: May struggle to meet short-term obligations
1.0 - 1.5: Adequate liquidity for most industries
1.5 - 3.0: Good liquidity position
Above 3.0: Excellent liquidity, but may indicate inefficient asset use
Current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with current assets.
It's calculated by dividing total current assets by total current liabilities.
A higher ratio generally indicates better short-term financial health.
Quick Ratio: More conservative, excludes inventory
Cash Ratio: Most conservative, only cash and equivalents
Working Capital: Absolute difference between current assets and liabilities
May indicate liquidity problems
Difficulty paying short-term debts
Potential cash flow issues
Higher financial risk
Healthy liquidity position
Can meet short-term obligations
Good financial flexibility
Balanced asset management
Excellent liquidity
May indicate inefficient asset use
Excess cash not being invested
Opportunity cost considerations
Current Assets: Cash, accounts receivable, inventory, and other assets expected to be converted to cash within one year
Current Liabilities: Debts and obligations due within one year
Save your calculations and get detailed breakdowns
© 2025 Developer & Financial Tools. Built with Nunjucks and Alpine.js.
All calculations run locally in your browser for privacy and speed.
Build v1.0.0.154154 • Aug 14, 2025, 02:49 AM EDT
main@64c1e45