 current ratio

The ratio obtained by dividing current assets by current liabilities to measure ability of the firm to pay shortterm debt from readily available funds.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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Current ratio — The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm s current assets to its current liabilities. It is expressed as follows: For example, if… … Wikipedia
current ratio — The ratio obtained when total current assets are divided by total current liabilities. A commonly used but not always good proxy for a firm s liquidity. American Banker Glossary Indicator of short term debt paying ability. Determined by dividing… … Financial and business terms
Current ratio — Indicator of short term debt paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company. The New York Times Financial Glossary * * * current ratio current ratio ➔ ratio * * *… … Financial and business terms
Current Ratio — A liquidity ratio that measures a company s ability to pay short term obligations. The Current Ratio formula is: Also known as liquidity ratio , cash asset ratio and cash ratio . The ratio is mainly used to give an idea of the company s ability… … Investment dictionary
current ratio — Fin a ratio of current assets to current liabilities, used to measure a company’s liquidity and its ability to meet its short term debt obligations. EXAMPLE The current ratio formula is a simple one: Current assets/Current liabilities = Current… … The ultimate business dictionary
Current Ratio — Liquiditätsgrade sind insbesondere in der Unternehmensfinanzierung und der Finanzbuchhaltung verwendete betriebswirtschaftliche Kennzahlen, mit denen die Fähigkeit eines Unternehmens, seinen Zahlungsverpflichtungen fristgerecht nachzukommen,… … Deutsch Wikipedia
current ratio — working capital ratio The ratio of the current assets of a business to the current liabilities, expressed as x:1 and used as a test of liquidity. For example, if the current assets are £250,000 and the current liabilities are £125,000 the current … Accounting dictionary
current ratio — working capital ratio The ratio of the current assets of a business to the current liabilities, expressed as x:1 and used as a test of liquidity. For example, if the current assets are £250, 000 and the current liabilities are £125, 000 the… … Big dictionary of business and management
current ratio — noun : the ratio between current assets and liabilities used in appraising credit worthiness of a business * * * the ratio between current assets and current liabilities. * * * current ratio, the ratio of current assets to current liabilities … Useful english dictionary
Current ratio — The ratio of current assets divided by current liabilities that shows the ability of a utility to pay its current obligations from its current assets. A measure of liquidity, the higher the ratio, the more assurance that current liabilities can … Energy terms