answersLogoWhite

0

The current ratio is calculated by dividing a company's current assets by its current liabilities. It indicates a company's ability to cover its short-term obligations with its short-term assets. A higher current ratio generally suggests better financial health, as it shows the company has more assets than liabilities to meet its short-term debts.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Related Questions

How does a business calculate the current ratio and why is it important for financial analysis?

A business calculates the current ratio by dividing its current assets by its current liabilities. This ratio helps assess a company's ability to cover its short-term debts with its current assets. It is important for financial analysis because it indicates the company's liquidity and financial health. A higher current ratio generally suggests a stronger financial position.


How do you calculate current assets in a company's financial statement?

To calculate current assets in a company's financial statement, you add together all the assets that are expected to be converted into cash or used up within one year. This typically includes cash, accounts receivable, inventory, and other short-term assets.


What is the market interest rate formula used to calculate the current interest rates in the financial market?

The market interest rate formula used to calculate current interest rates in the financial market is typically based on factors such as inflation, risk, and the overall economic environment. It is determined by the supply and demand for credit in the market, as well as the policies of central banks.


What is the current PurePoint Financial savings rate?

The current PurePoint Financial savings rate is 0.40.


What are the finance functions of a financial manager in current scenario?

what are the finance functions of a financial manager in current scenario?


Who is the current CEO of Toyota Financial Services?

Takuo Sasaki is the current CEO of Toyota Financial Services.


What is a current piece of Australian legislation that has relevance to the workplace and a companys ability to reach efficiency targets?

the north place


Is cash a financial asset or a real asset?

financial-current asset


How do you calculate dg current?

To calculate the DG set current, you need the load current and the load voltage. To convert it into kilowatts it is divided by 1000.


Does a positive result for Pap TB indicate a current or past infection?

Current.


How do you calculate net current assets?

It is current assests minus current liabilites


How do you calculate DG set current?

To calculate the DG set current, you need the load current and the load voltage. To convert it into kilowatts it is divided by 1000.