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