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ADVFN HomeHelpFinancialsDeeper AnalysisFINANCIAL RATIOS - Liquidity RatiosCurrent Ratio
FINANCIAL RATIOS - Liquidity Ratios
  Net Working Capital to Total Assets
  Current Ratio
  Quick Ratio (Acid Test)
  Liquidity Ratio
  Cash & Equv./Current Assets

Current Ratio

Current ratio, expresses a company's ability to repay short-term creditors out of its total current assets. The current ratio is the result of dividing the total of current assets (incl. stocks) by short-term borrowings. It shows the number of times short-term liabilities are covered by current assets. If the value is greater than 1.00, it means fully covered.

The formula is as follows:

= (stocks + debtors + cash & equivalents + current assets,other) / creditors,short




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