## About Current Ratio Calculator

The Current Ratio Calculator is used to calculate the current ratio

## Current Ratio Definition

The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It is calculated as current assets divided by current liabilities. A current ratio of assets to liabilities of 2:1 is usually considered to be acceptable (i.e. your current assets are twice your current liabilities).

## Formula

The current ratio calculation formula is as follows:

Current ratio = Current assets / Current liabilities

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