The current ratio is a financial ratio that shows the proportion of a company’s current assets to its current liabilities. The current ratio is often classified as a liquidity ratio and a larger current ratio i
流动比率(Current Ratio)用于评估企业短期偿债能力。其公式为: **流动资产 / 流动负债** - **选项A**:电流动资产除以流动负债,符合流动比率的定义,正确。 - **选项B**:总资产除以总负债,属于资产负债率或其他整体负债指标,与短期偿债无关。 - **选项C**:流动资产占总资产的比例,反映资产结构,并非偿债能力...
The current ratio formula is calculated by dividing total current assets by total current liabilities. This calculation shows investors, creditors, and management how well the short-term debt can be paid off using short-term assets. This is an important calculation for two main reasons.First...
The formula for the Current Ratio is: Using Intel’s balance sheet above, we can determine Intel’s Current Ratio at the time: Or, a Current Ratio of about 6.8. This tells investors that Intel has more than enough money to cover its current liabilities. ...
What is current ratio?Components of the current ratioWhat does current ratio tell you about your business?Current ratio formula: How to calculate current ratioCurrent ratio exampleCurrent ratio vs other liquidity ratiosCommon mistakes with the current ratioTying Current Ratios To Your Budgets Accounting...
Learn about current ratios in accounting. Find out what the current ratio formula is used for in accounting, and discover examples of good and bad current ratios. Related to this Question A company has total assets of $500...
Current liabilities include accounts payable, wages, accrued expenses, accrued interest and short-term debt.The formula is:Current ratio: Current assets / Current liabilities Sample current ratiosLet’s look at some examples of companies with high and low current ratios. You can find these numbers ...
Accounting liquidity ratios are key financial metrics that help evaluate a company’s ability to meet its short-term obligations. The main types of liquidity ratios are: Current ratio The current ratio is one of the most commonly used liquidity ratios. It evaluates how well a business can sett...
What are accounting ratios? What is a liquidity ratio? What is the difference between the current ratio and the acid test ratio? What is the debt to equity ratio? What is the debt to total assets ratio? What is the quick ratio?
Though the cash ratio formula is relatively simple and straightforward, there are some common pitfalls when calculating and evaluating the metric, such as: Including other short-term assets like inventory or accounts payable in the calculation (which would produce the current or quick ratio instead)...