# Liquidity Current Ratio Calculator

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

## 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**