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Current Ratio = Current Assets / Current LiabilitiesMeaning
The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. If the ratio is over 1.0, the firm has more short-term assets than short-term debts. But if the current ratio is less than 1.0, the opposite is true and the company could be vulnerable to unexpected bumps in the economy or business climate.
Muhammad Umair Tasleem
Zaigham Imran Nizami