The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
 | | 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 current total assets of a company (both liquid and illiquid) relative to that company's current total liabilities. | | Breaking it Down: | | The current ratio is mainly used to give an idea of a company's ability to pay back its... | | Read More » | | Related to "Current Ratio" | | | | Liquidity | | Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. | | Read More » | | | Key Ratio | | Key ratios are the main mathematical ratios that illustrate and summarize the current financial condition of a company. | | Read More » | | | Combined Ratio | | Combined ratio is a measure of profitability used by an insurance companu to indicate how well it is performing in its daily operations. | | Read More » | | | Efficiency Ratio | | The efficiency ratio is used to analyze how well a company utilizes its assets and liabilities internally. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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