Liquidity Current Ratio Calculator

Calculates the liquidity current ratio based on current assets and current liabilities.

Step by Step calculation

Liquidity Current Ratio Formula

The current ratio is calculated using two standard figures that a company reports in its quarterly and annual financial results which are available on a companys balance sheet.They are

1. Current Assets

2. Current Liabilities

The formula to calculate the current ratio is as follows:

Current Assets = Cash and Cash Equivalents + Short-term Investments + Net Receivables + Inventory + Other Current Assets

Current Liabilities = Accounts Payable + Short-term Debt + Other Current Liabilities

Liquidity Current Ratio = Current Assets / Current Liabilities