Current Ratio
Noun
US
/ˈkʌrənt ˈreɪʃiəʊ/
UK
/ˈkʌrənt ˈreɪʃiəʊ/
US
/ˈkʌrənt ˈreɪʃiəʊ/
UK
/ˈkʌrənt ˈreɪʃiəʊ/
Current assets divided by current liabilities — measures short-term liquidity.
CFOs rely on Current Ratio when structuring capital and planning corporate strategy.
Also known as: Liquidity Ratio. Closely related to Quick Ratio, Working Capital.
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Current Ratio - key concept in Corporate Finance.
Credit analysis; Business health check; Banking
Applied in Corporate Finance contexts: Credit analysis; Business health check