Definition of current ratio in English English dictionary
Current assets divided by current liabilities Fundamental analysis looks at this ratio to determine if a company may have problems meeting its short-term obligations If the current liabilities exceed current assets, the ratio is less than 1 0 and generally seen as a measure of short-term financial weakness Conversely, a ratio greater then 1 0 is seen as a measure of short-term financial strength
The ratio of a company's current assets to current liabilities It is a measure of the ability of a firm to pay off its current liabilities by liquidating its current assets
Current assets divided by current liabilities; measures a company's ability to meet its current financial obligations with current assets
The current ratio is a liquidity measure that is typically used to gage a firm'ssolvency and its ability to cover short term debt Normally this ratio exceeds but should be looked at in comparison to the industry ratio, which may be higher The larger the ratio, the more solvent the company is and the larger the cushion it has to pay its current liabilities An excessively large ratio for a long period of time also means that management is unable to use its resources effectively Current Ratio = Current Assets / Current Liabilities
The ratio of current assets to current liabilities The ratio is very important to business owners and short-term creditors because liquidation of current assets is a source of funds for current liabilities An acceptable minimum ratio is 2: 1, which considers that current assets sometimes shrink in value whereas current liabilities do not
Current Assets/Current Liabilities This ratio should be 1 0 or greater for liquidity If it drops below 1 0, the ability to pay bills is impaired If it is greater than 1 0, there is a possibility that assets are not being used efficiently to generate new revenue
A ratio of a business' current assets to its current liabilities Debt financing The use of borrowed money to finance a business
Indicator of company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities Used to compare companies within a single industry: the higher the ratio, the more liquid the company
a ratio that is used to evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities (p 195)
A ratio which indicates a business' ability to pay current liabilities as they become due It is calculated as the ratio of current assets to current liabilities
analyzing of the current resources of a business in contrast to the current debts to determine the short term stability of the business (Accounting)
Current assets divided by current liabilities An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is
The ratio obtained by dividing current assets by current liabilities It is an indicator of a firm's ability to pay its short-term debts as they become due
Current assets divided by current liabilities -- a measure of liquidity Generally, the higher the ratio, the greater the "cushion" between current obligations and a firm's ability to meet them
Current assets divided by current liabilities This ratio indicates the extent to which the claims of short-term creditors are covered by assets expected to be converted to cash in the near future
Also known as Working Capital Ratio A measure of liquidity of business Equal to current assets divided by current liabilities
Calculated by dividing total current assets by total current liabilities The data will be quarterly or, if not available, the latest fiscal year data will be displayed
The current ratio provides a speedy indication of a company's ability to meet short-term debt obligations The higher the ratio, the more liquid the company is, and the better able it is to take care of any short-term debt To determine the ratio, take current assets and divide by current liabilities
a commonly used method of measuring a firm's short term solvency by indicating its ability to pay current debts from current assets Current ratio is calculated by dividing current assets by current liabilities
A measure of a company's liquidity, or its ability to pay its short-term debts Calculated by dividing current assets by current liabilities Current assets at least twice current liabilities is considered a healthy condition for most businesses See Current Assets/Liabilities BACK TO TOP
A measure of the company's liquidity, or ability to pay its bills; it's calculated by dividing Current Assets by Current Liabilities
(Ticaret) A financial liquidity measure that divides current assets by current liabilities, with higher ratios indicating a more stable short-term position