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What does Current Ratio mean?

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its current assets.

Current Ratio in a sentence
Analysts use the current ratio to assess a company's ability to pay its short-term obligations.

Current Ratio in German, French, Spanish and Italian

German
Liquiditätsgrad 3
also Current Ratio

Sollte im Idealfall über 1 liegen, um Zahlungsfähigkeit zu garantieren.

French
Ratio de liquidité générale

Ratio mesurant la solvabilité à court terme.

Spanish
Ratio corriente
also Razón circulante

Indica si la empresa tiene suficientes activos para cubrir sus deudas próximas.

Italian
Indice di liquidità corrente

Rapporto tra attività correnti e passività correnti.

Common phrases with Current Ratio

  • evaluate current ratio
  • maintain current ratio
  • report current ratio

Synonyms and opposites for Current Ratio

  • Synonym Working Capital Ratio

More Accounting terms

All accounting terms →

Current Ratio is filed under