Current Ratio Calculator

The current ratio shows a company’s ability to pay its short-term debts. The formula is current assets divided by current liabilities.

This current ratio calculator calculates the proper formate for current ratio. The only numbers needed are current assets and current liabilities.


Current Ratio Formula 

The current ratio formula is Current Assets / Current Liabilities. Current assets and current liabilities are both shown on the balance sheet.

current ratio formula

For example, assume current assets are $14,000 and current liabilities are $10,000. The current ratio is 1.40. So, for every one dollar in current liabilities, the company has $1.40 in current assets.

See Current Ratio Definition for more complete information.


Current Ratio Calculator


Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

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