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Random Financial Term

Current Ratio

What you Need ?

Balance Sheet

Current Ratio = Current Assets / Current Liabilities

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.

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