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`CR = "Current Assets"/"Current Liabilities"`

Enter a value for all fields

The **Current Ratio** calculator computes a liquidity ratio that measures the ability to pay short-term liabilities.

**INSTRUCTIONS**: Choose units and enter the following:

**(**Current Assets**CA**)**(**Current Liabilities**CL**)

**Current Ratio (CR): **The ratio is returned as a real number.

The Current Ratio equation is a liquidity ratio that measures the ability to pay short-term liabilities.

Current Ratio = Current Assets / Current Liabilities

The **Accounting Ratio Calculator** provides numerous standard equations used in business accounting, including the following:

**Best Possible Days Sales Outstanding**- gives useful insight into delinquencies, as it considers only Current Receivables.**Current Ratio**- A liquidity ratio that measures the ability to pay short-term liabilities.**Days Sales Outstanding**- tests the efficiency of the conversion of receivables into cash.**Debt to Equity Ratio**- measures how a company is leveraging its debt against the resources of its owners.**Inventory Turnover Ratio**- reveals how many times inventory turns over in a period**Net Cash Flow from Operations**- Net income - Increase in Receivables + Increase in Payables.**Quick Assets**- cash and assets that can be converted quickly to cash**Quick Ratio**(aka Acid Test) - measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash**Stockholder's Equity**- sum of Common Stock at Par, Premium on Common Stock, Preferred Stock at Par, Premium on Preferred Stock and Retained Earnings