Current Ratio - Definition of Current Ratio on Investopedia - A liquidity ratio that measures a company's ability to pay short-term obligations. The Current Ratio formula is: ... Investopedia explains Current Ratio; The ratio is mainly used to give an idea of the company's ability to pay back its short...
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A high working capital ratio isn't always a good thing, it could indicate that they have too much inventory or they are not investing their excess cash. ... Current Assets ... Current Liabilities...
www.investopedia.com/university/ratios/workingcapital.a... www.investopedia.com/university/ratios/workingcapital.asp
Ratio of a company's current assets to its short-term debt. Used as a measure of a company's ability to survive over the near term, by being able to meet obligations with available funds. A current ratio of 1.0 means that the company could theoretically survive for one year, even if it made no sales.
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current ratio - definition of current ratio - An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is... ... the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities.
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The current ratio is a test of a company's liquidity. It can be calculated by dividing current assets by current liabilities on the balance sheet. ... The current ratio is another test of a company's financial strength. It calculates how many dollars in assets are likely to be converted to cash within one year in order to...
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Current ratio - Wikipedia, the free encyclopedia
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 liabiliti...
en.wikipedia.org/wiki/Current_ratio
The Current Ratio (CUR) method is a model for measuring the liquidity of a company by calculating the ratio between all current assets and all current liabilities. It is an indicator of a company's ability to pay short-term obligations.
www.valuebasedmanagement.net/methods_current_ratio.html www.valuebasedmanagement.net/methods_current_ratio.html
The first tool you use is called the current ratio. A measure of just how much liquidity a company has, this number is simply the current assets divided by the current liabilities. ... As a general rule, a current ratio of 1.5 or greater can meet near-term operating needs sufficiently. A higher current ratio can suggest that...
www.fool.com/School/Valuation/CurrentAndQuickRatio.htm www.fool.com/School/Valuation/CurrentAndQuickRatio.htm
current ratio n. The arithmetic ratio of current assets to liabilities. ... Dictionary: current ratio ... The higher the current ratio, the more assurance that current liabilities can be paid. Thus, there is greater short-term creditor protection.
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