Formula
to calculate current ratio:
Current
ratio = current assets / current liabilities.
Current
ratio definition and explanation:
The current ratio is used to evaluate the liquidity,
or ability to meet short term debts.
High current ratios are needed for companies that
have difficulty borrowing on short term notice.
The generally acceptable current ratio is 2:1
The minimum acceptable current ratio is 1:1
The current ratio is included in all the ratio
calculating programs, which provide formula, definition
and calculation of each ratio.
The current ratio is listed in our liquidity
ratios.
| The current ratio and other ratios are key
to understanding financial statements. Our
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In addition to the financial
statement ratio analysis spreadsheets listed in the top
left chart, the current ratio is also
included in out
CLA-15 Commercial Loan Officer spreadsheet which
provides the ratios, formulas and explanations for the
14 ratios used by Dunn and Bradstreet and the Altman
z-score bankruptcy predictor.
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list of
ratios our spreadsheets calculate, define and
explain.
Click here
to order excel accounting
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with their formulas, definitions, calculations, charts
and explanations. Each includes the
current ratio.
The current ratio
is included in our
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The current ratio
is included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
Click here
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accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio. (Includes
Current Ratio). Order free 3 ratio
calculator spreadsheet. Current ratio, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at 3ratios@bizwiz.ca. | 
