How to use the Current Ratio Calculator
Enter the current assets and current liabilities and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
How it works
Calculated from the inputs shown in this tool.
Examples
- Assets 5,000 and liabilities 2,500
Current ratio: 2:1
- Assets 180,000 and liabilities 120,000
Current ratio: 1.5:1
- Assets 40,000 and liabilities 55,000
Current ratio: 0.72727273:1
Limitations and assumptions
Confirm assumptions, units and applicable local rules before relying on results. Detailed content, accessibility and edge-case review remains ongoing.
Frequently asked questions
What is the current ratio formula?
Current assets ÷ current liabilities.
What is a good ratio?
Above 1 means assets cover short term debts; many analysts look for 1.5 to 2, depending on the industry.
Is a very high ratio good?
Not always, it can mean idle cash or slow-moving stock.
What is the quick ratio?
A stricter test that leaves out inventory.