Word forms: (regular plural) current ratios
( Accounting : Investing )
working capital ratio
The current ratio is a test of a business's short-term solvency: its capability to pay its liabilities
that fall due within the next year.
A manufacturer normally needs a current ratio of around 2:1. More than this suggests poor resource usage and potential liquidity
A current ratio is a measure of liquidity that is calculated by dividing current assets by current
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