The current ratio calculator allows you to calculate the comparison between current assets and current liabilities.
The current ratio is a direct comparison of a companies current assets to current liabilities. A current ratio calculator looks to define the relationship that compares between those two numbers for year on year financial trends.
Use the current ratio calculator to calculate current ratio, historical financial ratios and year on year ratio changes. The current ratio calculator will then calculate trends and provide a graph of results for your financial year on year metrics.
Calculating the current ratio is very simple. Simple divide a companies current assets by their current liabilities.
Current Ratios are used to define whether a company, sales line or product is performing well or performing badly.
Current Ratios are most effective when compared against historical data. This will typically be year on year comparison as shown in this Current Ratio Calculator. Corporations will typically track their current ratios on a month by month basis or quarterly
More importantly for companies, current ratios and historical ratio trends are used by credit agencies as part of the means testing for loans and investments. A positive ratio means a good performance period on period (whether month, quarter or year).
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