Current Ratio
Leverage & Liquidity
What is Current Ratio?
Current assets divided by current liabilities. A measure of a company's ability to pay short-term obligations.
Why Current Ratio matters
A ratio above 1.0 generally indicates the company can cover its near-term debts. Below 1.0 may signal liquidity concerns.
Related terms in Leverage & Liquidity
Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.