Current Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Current Ratio = Current Assets/Current Liabilities
CR = CA/CL
This formula uses 3 Variables
Variables Used
Current Ratio - The current ratio helps you to determine if you have enough working capital to meet your short term financial obligations.
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 00.004 seconds)

Credits

Created by Team Softusvista
Softusvista Office (Pune), India
Team Softusvista has created this Calculator and 600+ more calculators!
Verified by Himanshi Sharma
Bhilai Institute of Technology (BIT), Raipur
Himanshi Sharma has verified this Calculator and 800+ more calculators!

6 Liquidity Ratios Calculators

Business Quick Ratio
Go Quick Ratio = (Current Assets-Inventory)/Current Liabilities
Quick Ratio
Go Quick Ratio = (Current Assets-Inventory)/Current Liabilities
Cash Ratio
Go Cash Ratio = (Cash and Cash Equivalents/Current Liabilities)
Business Current Ratio
Go Current Ratio = Current Assets/Current Liabilities
Current Ratio
Go Current Ratio = Current Assets/Current Liabilities
Average Collection Period using Receivables Turnover
Go Average Collection Period = 365/Receivables Turnover Ratio

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 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) & 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 & 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) & Current Liabilities (CL). With our tool, you need to enter the respective value for Current Assets & Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!