DEFINITION
The current ratio is current assets divided by current liabilities, a measure of a business's ability to pay short-term obligations.
A ratio above 1 means the business has more short-term assets than short-term debts.
GLOSSARY
The current ratio is current assets divided by current liabilities, a measure of a business's ability to pay short-term obligations.
A ratio above 1 means the business has more short-term assets than short-term debts.