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The Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations. Check FAQs
CR=CACL
CR - Current Ratio?CA - Current Assets?CL - Current Liabilities?

Business Current Ratio Example

With values
With units
Only example

Here is how the Business Current Ratio equation looks like with Values.

Here is how the Business Current Ratio equation looks like with Units.

Here is how the Business Current Ratio equation looks like.

2.65Edit=79500Edit30000Edit
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HomeIcon Home » Category Financial » Category Business » Category Financial Ratios » fx Business Current Ratio

Business Current Ratio Solution

Follow our step by step solution on how to calculate Business Current Ratio?

FIRST Step Consider the formula
CR=CACL
Next Step Substitute values of Variables
∴ CR=7950030000
Next Step Prepare to Evaluate
∴ CR=7950030000
LAST Step Evaluate
∴CR=2.65

Business Current Ratio Formula Elements

Variables
Current Ratio
The Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations.
Symbol: CR
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Current RatioOpen Variable
Current Assets
Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.
Symbol: CA
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Current AssetsOpen Variable
Current Liabilities
Current Liabilities are the company debts or obligations that are due within one year.
Symbol: CL
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Current LiabilitiesOpen Variable

Other Formulas to find Current Ratio

​Go Current Ratio
CR=CACL

Other formulas in Liquidity Ratios category

​Go Free Cash Flow
FCF=CFO-CAPEX
​Go Free Cash Flow to Firm
FCFF=CFO+(Int⋅(1-tax))-CAPEX
​Go Debt to Assets Ratio
DA=TLTA
​Go Debt to Equity Ratio
RD/E=TLTSE⋅100

How to Evaluate Business Current Ratio?

Business Current Ratio evaluator uses Current Ratio = Current Assets/Current Liabilities to evaluate the Current Ratio, Business Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations. Current Ratio is denoted by CR symbol.

How to evaluate Business Current Ratio using this online evaluator? To use this online evaluator for Business Current Ratio, enter Current Assets (CA) & Current Liabilities (CL) and hit the calculate button.

FAQs on Business Current Ratio

What is the formula to find Business Current Ratio?
The formula of Business Current Ratio is expressed as Current Ratio = Current Assets/Current Liabilities. Here is an example- 2.65 = 79500/30000.
How to calculate Business Current Ratio?
With Current Assets (CA) & Current Liabilities (CL) we can find Business Current Ratio using the formula - Current Ratio = Current Assets/Current Liabilities.
What are the other ways to Calculate Current Ratio?
Here are the different ways to Calculate Current Ratio-
  • Current Ratio=Current Assets/Current LiabilitiesOpenImg
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