The current ratio shows a company’s ability to meet its short-term obligations. The ratio is calculated by dividing current assets by current liabilities. An asset is considered current if it ...

The current ratio is calculated by dividing a company's current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency. Because the current ratio compares short-term ...

See how we rate investing products to write unbiased product reviews. The current ratio measures a company's capacity to pay its short-term liabilities due in one year. The current ratio weighs a ...

Reviewed by Charlene Rhinehart Fact checked by Suzanne Kvilhaug What Is a Liquidity Ratio? A liquidity ratio is a measurement ...

Current assets divided by current liabilities, called the current ratio, is a liquidity ratio often used to gauge short-term financial well-being. It’s also known as the working capital ratio.

The quick ratio evaluates a company's ability to pay its current obligations using liquid assets. The higher the quick ratio, the better a company's liquidity and financial health. A company with ...

How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and ...

The quick ratio compares the value of a company's most liquid assets to the value of its current liabilities so investors can get a sense of how well it can cover its expenses in the short term.