The ratio of current assets to current liabilities. This ratio is an indicator of a company’s ability to meet its current obligations. To learn more, seeExplanation of Financial Ratios. Related Q&A What is the current ratio? What is the difference between the current ratio and the acid test...
Current Ratio Definition The current ratio is balance-sheet financial performance measure of company liquidity. The current ratio indicates a company's ability to meet short-term debt obligations. The current ratio measures whether or not a firm has enough resources to pay its debts over the next...
The meaning of CURRENT RATIO is the ratio between current assets and liabilities used in appraising credit worthiness of a business.
Learn about current ratio in accounting with a simple example. You can also learn other important accounting terms from Zoho Books' accounting dictionary.
Current ratio is a liquidity ratio which measures a company's ability to pay its current liabilities with cash generated from its current assets. It equals current assets divided by current liabilities.
The meaning of CURRENT RATIO is the ratio between current assets and liabilities used in appraising credit worthiness of a business.
ratio Vox populi The value obtained by dividing one quantity by another; a measure of association calculated by dividing one amount by another. See Abortion ratio, A/G ratio, A/P ratio, AT/GC ratio, Benefits-to-cost ratio, Branching ratio, Case-to-infection ratio, Case-fatality ratio, CD4...
The general definition of liquidity is described as current assets less current liabilities, i.e. net current assets; also known as working capital. This is measured by "current ratio" - i.e. Current assets divided by current liabilities. Short term liquidity however is measured by quick ratio...
Define Current Loan-to-Value Ratio. The Principal Balance of a Mortgage Loan as of the applicable date of substitution divided by the Appraised Value.
Current ratio Quick ratio Working capital ratio 2. Solvency Ratios Also called financial leverage ratios,solvency ratioscompare a company's debt levels with its assets, equity, and earnings. These are used to evaluate the likelihood of a company staying afloat over the long haul by paying off bo...