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Current Ratio Calculator
Current Assets ÷ Current Liabilities.
Enter values to see your result
Frequently asked questions
What qualifies as current?
Assets/liabilities expected to convert or settle within 12 months. Current assets: cash, receivables, inventory, prepaid expenses.
Quick ratio vs current ratio?
Quick excludes inventory (less liquid). More conservative. If inventory is bulk of current assets, quick ratio gives truer picture.
Industry variation?
Retail: 1.0–1.5 (fast inventory turnover). Manufacturing: 1.5–2.5. Utilities: 0.8–1.2 (predictable cash flow). Compare within industry.
Too high — problem?
Yes — too much cash sitting idle. 5+ ratio suggests poor capital allocation. Either pay dividends, buy back shares, or invest.