Current Ratio Calculator

💼 Evaluate Liquidity with Our Current Ratio Calculator

When assessing a company’s short-term financial health, one of the most important metrics is the Current Ratio. It helps determine whether a business has enough assets to cover its short-term liabilities — and now, you can calculate it instantly using our Current Ratio Calculator.

🔍 What is the Current Ratio?

The Current Ratio is a liquidity ratio that measures a company’s ability to pay off its short-term obligations with its short-term assets. It’s calculated using the formula:

Current Ratio = Current Assets / Current Liabilities

• A ratio above 1 indicates that the company has more assets than liabilities — a sign of good liquidity.
• A ratio below 1 may suggest potential liquidity issues or financial stress.

This ratio is especially useful for creditors, investors, and financial analysts evaluating operational stability.

🧮 How to Use the Current Ratio Calculator

Just enter:

• The company’s Current Assets
• The Current Liabilities

And the calculator will instantly show you the Current Ratio.

This tool is ideal for:

• Finance professionals preparing reports
• Investors assessing short-term risk
• Students learning financial analysis

📊 Current Ratio in Action

Let’s say a company has:

• Current Assets: ₹15,00,000
• Current Liabilities: ₹7,50,000

Then the Current Ratio would be:

₹15,00,000 ÷ ₹7,50,000 = 2.00

This means the company has ₹2 in assets for every ₹1 in liabilities — a strong indicator of liquidity.

💡 Final Thoughts

The Current Ratio is a simple yet powerful tool for evaluating a company’s short-term financial strength. It’s most effective when used alongside other metrics like the Quick Ratio and Cash Ratio for a complete liquidity analysis.

Use our calculator to assess financial stability quickly and confidently — and add it to your toolkit for smarter business and investment decisions.