Business
Working capital
Calculate the net amount supporting short-term operations.
Calculators / Business / Current ratio
Current ratio calculator
Compare current assets with current liabilities.
On this page
Current ratio1.5×
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How to calculate
Compare current assets with current liabilities.
Current ratio = assets/liabilities
Worked example
Current assets: 150000; Current liabilities: 100000.
Current ratio: 1.5 ×.
Assumptions and limits
There is no universal threshold. Industry, inventory quality, seasonality and cash-flow timing affect interpretation.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
The current ratio compares short-term assets with short-term obligations at a point in time.
When this tool is useful
Compare current assets with current liabilities.
Understanding your inputs
| Input | What to enter |
|---|---|
| Current assets | Enter a number of at least 0 and no more than 1000000000000. |
| Current liabilities | Enter a number of at least 0.01 and no more than 1000000000000. |
Frequently asked questions
What is a good current ratio?
There is no universal threshold. Industry, inventory quality, seasonality and cash-flow timing affect interpretation.