# current ratio

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## current ratio

n.
The arithmetic ratio of current assets to liabilities.
Translations

## current ratio

n (Econ) →
References in periodicals archive ?
The current ratio and its variations are most commonly used to assess a company's liquidity, but these measures do not incorporate the element of time.
Using a current ratio (solvency) or a quick ratio (liquidity) can provide early warning of looming cash problems.
The instructor can direct students to the SEC's EDGAR website to gather data necessary to see how seven identified pairs of peer retailers fared when measured on this metric vis-a-vis the current ratio.
Traditionally the current ratio and the quick (acid test) ratio were used to analyses the short term liquidity of a business.
Financial covenants are measured quarterly and consist of a current ratio of at least 1.
Your bank will be interested in the current ratio (total current assets divided by total current liabilities) and the quick ratio (cash and equivalents plus net trade receivables, divided by total current liabilities).
Current ratio without the growing Current ratio with the growing crop: crop: Current ratio = Current assets / Current ratio = Current assets / Current liabilities Current liabilities = \$25,000 / 21,600 = [\$25,000 + 60,000] / 21,600 = 1.
Mark Rusch, PME's CFO and partner, also provides the bank with detailed aged payables and receivables; inventory totals; monthly loan covenant calculations, which include debt-to-tangible net worth and current ratio calculations; collateral reports, with a breakdown of payables and receivables used in the calculations; and quarterly cash flow coverage.
Many bankers and other short-term lenders believe that a retailer should have a current ratio of 2 to 1 in order to qualify as a good credit risk.
rejected a Japanese proposal to review the current ratio, in which U.
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