Current Ratio Calculator
Calculate your current ratio to assess your liquidity position and financial health
Financial Details
Results
Enter your financial details to calculate current ratio
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How to Use Current Ratio Calculator
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It's calculated by dividing current assets by current liabilities.
Formula
Current Ratio = Current Assets ÷ Current Liabilities
Interpretation
- 2.0 or higher: Excellent liquidity position
- 1.5 - 1.9: Good liquidity position
- 1.0 - 1.4: Adequate liquidity position
- Below 1.0: Poor liquidity - potential cash flow issues
Tips for Improving Current Ratio
1Increase Current Assets
- •Collect accounts receivable faster
- •Sell excess inventory
- •Invest in short-term securities
2Decrease Current Liabilities
- •Pay down short-term debts
- •Negotiate better payment terms with suppliers
- •Refinance short-term loans