# Liquidity current ratio

Calculate the Liquidity current ratio with our free online tool using the input parameters: Cash, Investments, Receivables, Inventory, Debt

The current ratio, also known as the liquidity ratio, is a crucial measure of a company’s ability to meet its short-term obligations with its short-term assets. By dividing the current assets by the current liabilities, this ratio provides valuable insights into a company’s liquidity position. Additionally, the current assets and current liabilities are key components in determining the working capital, which represents the difference between the two. Enhance your financial analysis with a clear understanding of the current ratio and its relationship to working capital.

Where:

`a`

= Cash and Cash Equivalents

`b`

= Short-term Investments

`c`

= Net Receivables

`d`

= Inventory

`e`

= Other Current Assets

`u`

= Accounts Payable,

`v`

= Short-term Debt

`w`

= Other Current Liabilities

Improve your financial analysis with the Calculate Liquidity Current Ratio tool. This online calculator enables you to determine the current ratio, a vital measure of a company’s liquidity. By dividing the current assets by the current liabilities, you can assess the company’s ability to meet short-term obligations. Gain valuable insights into the financial health of a business and make informed decisions. Use the Calculate Liquidity Current Ratio tool now and optimize your financial analysis.