The Current Ratio: Formula, What It Is, & How to Calculate It

The Current Ratio: Formula, What It Is, & How to Calculate It

The current ratio, also known as the working capital ratio, is a liquidity ratio that measures the proportion of a company’s current assets to its current liabilities. It is used to measure a company’s short-term financial health. The current ratio indicates whether or not a company has enough short-term assets to cover its short-term financial obligations.…

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