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Current Ratio = Current Assets / Current Liabilities

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14y ago

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Current ratio and liquidity ratio are same?

no they are not the same. the current ratio is current assets/current liabilities. but liquidity ratio or acid test ratio is current assets - stock/current liabilities. liquidity ratio shows you how able a business is to pay off its debt when stock is taken out of the equation.


How do you get a current ratio?

Formula for current ratio is as follows: Current ratio = Current assets / current liabilities


What is a measure of liquidity?

the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities


An example of liquidity ratio is the?

current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.


The ratio of current assets to current liabilities is called the?

The ratio between current assets to current liability is called "Current Ratio".


Is a ratio an equation?

no


What is the formula for current ratio?

current ratio = current asset divided by current liability


What is a equation that shows two ratio are equation?

Such an equation is called a "proportion".


What is the current ratio if cash is 8000 accounts payable is 2000 and stocks worth 2000?

Current ratio = current assets / current liabilityCurrent ratio = 10000 / 2000current ratio = 500%


current ratio?

this ratio analyzes whether a company can pay off its short-term obligations using its current assets. generally, the ideal current ratio for a company is considered to be 2.00. current ratio is calculated using the following formula:Current ratio = Current assets / Current liabilities


What is the latest current ratio for FedEx?

Current Ratio (MRQ) is 1.57


How do you calculate ratio?

current ratio = current assets / current liablities A ratio (in trig) is simply the division of two lengths. A tangent (in trig) is the ratio of the opposite and adjacent legs.