current ratio
Calculated to assess the short-term solvency, or debt-paying
ability of a business, it equals total current assets divided by total current
liabilities. Some businesses remain solvent with a relatively low current ...
Current Ratio
Ratio of a company's current assets to its short-term debt. Used as a measure of a company's ability to survive over the near term, by being able to meet obligations with available funds. A current ratio of 1.
current ratio
The ratio of current assets to current liabilities. This ratio is an indicator of a company's ability to meet its current obligations. To learn more, see Explanation of Financial Ratios.
» For more clarity on this term: ...
Current Ratio:
It is a commonly used measure of short-run solvency. It is the immediate ability of a company to pay its current debts as they become due. It is calculated by dividing Current Assets by Current Liabilities.
Current ratio
A ratio that tests the strength of a company's working capital. Current assets are divided by current liabilities and the result is expressed as a factor, x to y. ...
Current ratio is balance-sheet financial performance measure of company liquidity. Current ratio is calculated by dividing current assets by current liabilities. Current ratio of more than 1.
current ratio
measure of liquidity. Current assets are divided by current liabilities. Assuming current assets are $120,000 and current liabilities are $40,000 the current ratio is
$120,000
$40,000 ...
The current ratio formula is a simple one:
Current assets / Current liabilities = Current ratio ...
Current ratio
Definition: The current ratio is a general indicator of the business's ability to meet its short-term financial commitments.
Current Ratio = $175,000 / $120,000 = $1.46
This means that for every $1 of debt or liability, Coco Corp. has $1.46 of Cash. This means the short term debt of the firm is covered over by 1.46 times.
Current Ratio
Indicator of short-term debt paying ability determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company.
D/E Ratio
(1) Debt/equity ratio.
Current Ratio (MRQ)
This is the ratio of Total Current Assets for the most recent quarter divided by Total Current Liabilities for the same period.
D
Depreciation
This reflects the depreciation for all capital goods.
Current Ratio
The current ratio is the big daddy of short term liquidity ratios, and shows the degree of cover of short term current assets, over and above short term current liabilities. Here's how to calculate it ...
Current ratio:
Current assets, including cash, accounts receivable and inventory, divided by current liabilities, including all short-term debt.
Current Ratio
A test of a corporation's liquidity--that is, a corporation's ability to pay its current obligations from current assets. The ratio is calculated by dividing current assets by current liabilities.
current ratio The relationship between current assets and current liabilities; calculated by dividing the dollar amount of current assets by the dollar amount of current liabilities.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
D ...
Current Ratio
The total Current Assets divided by the total Current Liabilities. This is a good measure of the company's ability to pay its debts in the immediate future.
Current Yield ...
Current Ratio
This is the same as the Liquid ratio but Inventory (and in this example Prepayments) is also included. In book publishing Inventory is not quickly convertible into cash. Work-in-Progress has low immediate value.
Current Ratio
Current assets divided by current liabilities. The ratio shows a company's ability to pay its current obligations from current assets.
Current yield ...
Current Ratio: Simply, a company's current assets divided by its current liabilities. From this ratio, you can determine whether a company could pay off its debts with its current assets if it needed to.
Current Ratio: Also known as Working Capital Ratio. This ratio is a measure of liquidity of the business. Equal to current assets divided by current liabilities.
CURRENT RATIO " A test of a corporation's liquidity. It is found by dividing current assets by current liabilities.
CURRENT YIELD " Also called current return. It is found by dividing the yearly interest by the price of the bond.
current ratio Total current assets divided by total current liabilities.
custodian One who has possession or is in charge of something. Some entities entrust investment securities to a bank, which is custodian of the company's securities.
Current Ratio The current ratio is a liquidity measure that is typically used to gauge a firm's solvency and its ability to cover short-term debt. Usually this ratio exceeds but should be looked at in comparison to the industry ratio.
Current Ratio or Working Capital Ratio
Current assets of a business divided by current liabilities, thus measuring how much the value of current assets exceeds its liabilities.
current ratio: A value calculated by dividing current assets by current liabilities.
current yield: The coupon rate of a bond divided by the market price of the bond.
Current ratio: Current assets divided by current liabilities.
Current yield: The ratio of the current income from an investment to the purchase price or the current price of the investment.
Current ratio:
A Liquidity ratio expressed as the ratio between a business' Current assets and its Current liabilities.
current ratio
The ratio obtained when total current assets are divided by total current liabilities. A commonly used but not always good proxy for a firm's liquidity.
current yield ...
Current Ratio - Current assets divided by current liabilities. Fundamental analysis looks at this ratio to determine if a company may have problems meeting its short-term obligations.
Current ratio
Liquid / Acid test / Quick ratio
Activity Ratios:
Activity ratios are calculated to measure the efficiency with which the resources of a firm have been employed.
Current Ratio Indicator of short-term debt paying ability. Determined by dividing by . The higher the ratio, the more liquid the company.
Current Yield For bonds or notes, the rate divided by the market price of the .
Current Ratio = Current Assets/Current Liabilities
Classy Company has a current ratio of 3:1 ($450,000/$150,000). Be advised that ratios can be manipulated. If Classy wished to increase their current ratio, they could just pay off a little debt.
Current Ratio - Refers to the amount of an entity's current assets divided by the amount of current liabilities.
Current ratio
The current ratio is measured as current assets divided by current liabilities. It indicates a firm’s ability to meet its short-term obligations.
Current service cost ...
Current Ratio
Current assets divided by current liabilities. This is an indication of a company's ability to meet short-term debt obligations. The higher the ratio, the more liquid the company is. See also RATION and QUICK RATIO.
Current Review ...
The current ratio is calculated by dividing total current assets by total current liabilities. It is frequently used as an indicator of a company's liquidity, its ability to meet short-term obligations.
[edit] Notes
[edit] External links ...
Dynamic Current Ratio: What It Is And How To Use It
Introduction To Fundamental Analysis
Ratio Analysis Tutorial
Accounts Receivable (A/R) Discounted ...
scot and lot
Current Ratio (business term)
Solvency (in banking)
Capacity (in banking) ...
Ratios like the current ratio and the quick ratio used current assets to determine whether a business is able to meet their current day to day expenses.
Short-term solvency ratios Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid test ratio, (3) the inventory turnover ratio, ...
Current ratio is particularly important to a company thinking of borrowing money or getting credit from their suppliers. Potential creditors use this ratio to measure a company's liquidity or ability to pay off short-term debts.
Current Ratio
A financial ratio indicating how easily a company could pay its bills if all its creditors demanded payment at once. Calculated as: current ...(Read more)
Current Yield ...
The quick ratio, sometimes called the acid test ratio, is similar to the current ratio, but is considered a more reliable indicator of a company's ability to meet its short-term financial obligations.
The quick ratio is similar to current ratio. But current ratio is a less stringent test because it adds inventory, which may not always be easy to sell quickly, to cash, ...
The Current ratio has increased (the change is more then zero, so even a negligible increase passes the test!)
no raising of ordinary (common) equity over the previous year: this test is passed if the company did not issues any ordinary shares.
A view in the stock database that displays: Fiscal Year End, QuickRatio, Debt/Equity Ratio, Current Ratio, and Cash/Share. These items measure the financial health of a company, particularly its assets and liabilities.
It's a more pessimistic-but also realistic-measure of safety than the current ratio, because it ignores sluggish, hard-toliquidate current assets like inventory and notes receivable. Here's the formula: ...
Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid-test ratio, (3) the inventory turnover ratio, and (4) the accounts receivable turnover ratio.
Ratio - Denotes relationships of items within and between financial statements, e.g., current ratio, quick ratio, inventory turnover ratio and debt/net worth ratios.
A ratio that measures a company's ability to pay off short-term debt as it becomes due. The main ratios of this type are the current ratio (Current Assets divided by Current Liabilities) and the quick ratio (Current Assets less inventory divided ...
Liquidity Ratio: Ratios (cash asset ratio, current ratio, quick ratio) that quantify a company's ability to discharge debt obligations maturing within one year.
...
Current Ratio This ratio is a measure of a company's ability to pay its short-term debts as they become due. It is computed from a BALANCE SHEET by dividing CURRENT ASSETS by CURRENT LIABILITIES.
The PBGC is a guarantee fund, established by ERISA, which covers all defined benefit pension plans. Companies with a defined benefit plan must pay premiums into this fund according to the number of employees in the plan and the current ratio of ...
It is a more stringent measure of short-term liquidity than the current ratio because it excludes inventories from current assets (which presumes that current liabilities cannot be paid with inventory).
helps to answer the question, "If revenues stopped, could the business meet current obligations with assets that are readily convertible into cash?" A quick ratio of 1:1 or better is usually satisfactory. Also called acid-test ratio or current ratio.
Share, Debt Service Coverage, Required Rate of Return, Wholly-Owned Subsidiary, VIX, Retained Earnings, Inflation, APR, 144a, Dividends Payable, Class C Shares, Open Position, FICO Score, Labor Relations, Annual Return, 1035 Exchange, Current Ratio, ...
current ratio An indication of a firm's ability to meet short-term debt obligations; the higher... current yield In terms of investment returns, current yield divides the yearly income (dividends...
 See also: Stock split, Liquidity ratio, Limit Order, Deferred tax, Ex-dividend
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