Term of the Day: Current Ratio

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	INVESTOPEDIA Term Of The Day September 21, 2015 Current Ratio The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the total assets of a company (both liquid and illiquid) relative to that company's total liabilities. The current ratio is also known as the working capital ratio. Breaking It Down: The current ratio is mainly used to give an idea of the company's ability to pay back its liabilities... Read More Related to "Current Ratio" Warning Signs Of A Company In Trouble As a financial advisor, it is your fiduciary responsibility to keep an eye on your client's investments... Read More Analyzing Investments With Solvency Ratios Solvency ratios are primarily used to measure a company's ability to meet its long-term obligations. In general, a solvency ratio measures... Read More Getting On The Right Side Of The P/E Ratio Trend John Templeton, of Templeton Funds, says to "buy bargains," meaning, buy stocks when they... Read More Recently Added Definitions Behavioral Funds During periods of market downturn, for instance, investors tend to have a herd mentality of shying away even from... Read More Deficit The term deficit is generally prefixed by another term to refer to a specific situation, a trade deficit or... Read More Related Definitions Current Assets Quick Ratio Debt/Equity Ratio Acid-Test Ratio Working Capital Past Terms of the Day Maintenance Margin Return On Invested Capital - ROIC Profit Margin Investment Banker Operating Margin You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: