💧Liquidity Ratios
Current Ratio
Current Assets ÷ Current Liabilities = Current Ratio
What It Means
Can you pay short-term debts with short-term assets?
✓1.5 or higher is generally healthy
Example
Current Assets:$150,000
Current Liabilities:$100,000
$150,000 ÷ $100,000
Current Ratio = 1.5
→ Healthy—$1.50 in assets for every $1 owed
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