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Current Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
current_ratio = Current Assets/Current Liabilities
CR = CA/CL
This formula uses 2 Variables
Variables Used
Current Assets- Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.
Current Liabilities- Current Liabilities are the company debts or obligations that are due within one year.
STEP 1: Convert Input(s) to Base Unit
Current Assets: 79500 --> No Conversion Required
Current Liabilities: 3000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CR = CA/CL --> 79500/3000
Evaluating ... ...
CR = 26.5
STEP 3: Convert Result to Output's Unit
26.5 --> No Conversion Required
FINAL ANSWER
26.5 <-- Current Ratio
(Calculation completed in 00.014 seconds)

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quick_ratio = (Current Assets-Inventory)/Current Liabilities Go
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1 Other formulas that calculate the same Output

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Current Ratio Formula

current_ratio = Current Assets/Current Liabilities
CR = CA/CL

How to Calculate Current Ratio?

Current Ratio calculator uses current_ratio = Current Assets/Current Liabilities to calculate the Current Ratio, The current ratio helps you to determine if you have enough working capital to meet your short term financial obligations. Current Ratio and is denoted by CR symbol.

How to calculate Current Ratio using this online calculator? To use this online calculator for Current Ratio, enter Current Assets (CA) and Current Liabilities (CL) and hit the calculate button. Here is how the Current Ratio calculation can be explained with given input values -> 26.5 = 79500/3000.

FAQ

What is Current Ratio?
The current ratio helps you to determine if you have enough working capital to meet your short term financial obligations and is represented as CR = CA/CL or current_ratio = Current Assets/Current Liabilities. Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year and Current Liabilities are the company debts or obligations that are due within one year.
How to calculate Current Ratio?
The current ratio helps you to determine if you have enough working capital to meet your short term financial obligations is calculated using current_ratio = Current Assets/Current Liabilities. To calculate Current Ratio, you need Current Assets (CA) and Current Liabilities (CL). With our tool, you need to enter the respective value for Current Assets and Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Current Ratio?
In this formula, Current Ratio uses Current Assets and Current Liabilities. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • current_ratio = Current Assets/Current Liabilities
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