Current Ratio (CR)
Current assets divided by current liabilities
FORMULA
Current Ratio = Current Assets / Current Liabilities
What is Current Ratio?
The Current Ratio measures a company's ability to pay short-term obligations with its current assets. It indicates liquidity and financial stability. A ratio above 1.5 is generally considered healthy, though the ideal ratio varies by industry. A ratio below 1.0 suggests potential liquidity problems.
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Sample Data
| quarter | currentAssets | currentLiabilities | ratio |
|---|---|---|---|
| Q1 | 1,500,000 | 800,000 | 1.88 |
| Q2 | 1,600,000 | 850,000 | 1.88 |
| Q3 | 1,700,000 | 900,000 | 1.89 |
| Q4 | 1,800,000 | 950,000 | 1.89 |
Required Data Columns
Current AssetsCurrent Liabilities