A liquidity ratio that measures the ability of a business to pay short-term obligations. It is often used by banks when evaluating business loan requests.
Formula: Current Ratio = Current Assets ÷ Current Liabilities.
A liquidity ratio that measures the ability of a business to pay short-term obligations. It is often used by banks when evaluating business loan requests.
Formula: Current Ratio = Current Assets ÷ Current Liabilities.