logo share us

Current Ratio

   

Definition: Current Ratio is a model for measuring the liquidity of a company. It can be calculated by dividing all current assets by all current liabilities.
The CR is an indicator of a company's ability to pay its short-term obligations.
This ratio is also known as the working capital ratio or real ratio and is the standard measurement of a business' financial health.
It will tell us whether a company is able to pay its current obligations by measuring if it has enough assets to cover its liabilities.
Another way to determine the liquidity of a company is the Quick Ratio.


   
   
💡

Learn more about Current Ratio.



More on investing: Alternative Investments, Asset Management, Break-even Point, BRIC Countries, Capital Structure, more on investing...

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.



MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.


add us to your desktop

Add MBA Brief to your desktop / iPad

   

© 2024 MBA Brief - Last updated: 29-3-2024  -  Privacy   |   Terms