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# Current Ratio Calculator

Last updated: Monday, May 01, 2023

Current Ratio is one of the liquidity ratios which helps determine how liquid a company is and its ability to pay its short term obligations within the current fiscal year. Liquidity is an important measure, as a general rule of thumb, a current ratio above 1 is considered healthy. However if the ratio is above 5, it could be a sign of mismanagement, as the money could have been spent on things that would help the company grow in the long term.

* Warren Buffet prefers companies with current ratios above 1.5.

The formula for determining the current ratio is defined as:
$$CR$$ $$=$$ $$\dfrac{Current\text{ }Assets}{Current\text{ }Liabilities}$$
$$CR$$: Current Ratio
$$Current\text{ }Assets$$: Cash or other assets which are expected to be converted into cash within the current fiscal year.
$$Current\text{ }Liabilities$$: Debts that a company must pay within the fiscal year. All numbers in thousands..

## Find Current Ratio

Use this calculator to determine the current ratio of a public company
Cash or other assets which are expected to be converted into cash within the current fiscal year.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
$$Current\text{ }Assets$$

Debts that a company must pay within the fiscal year. All numbers in thousands..
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
$$Current\text{ }Liabilities$$

Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
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