Current Ratio or Working Capital Ratio Calculator

Written by:
PK

Below is a current ratio calculator or working capital ratio calculator. Find a company's current assets and current liabilities from its balance sheet, and the tool will compute a current ratio.

Current Ratio Calculator

What is a company's current ratio or working capital ratio?

A current ratio is a liquidity ratio that gives an at-a-glance check on a company's ability to pay its liabilities due in the following 12 months using assets currently on the books. It shows a company's ability to pay short-term liabilities without bringing in additional cash. It's also sometimes called the working capital ratio.

A current ratio of 1 or higher means a company can likely meet its short term liquidity needs, even without further cash.

Current Ratio Formula

The current ratio formula is:

current\ ratio=\frac{current\ assets}{current\ liabilities}

Where:

  • Current Assets – Short-term assets listed on the company's balance sheet
  • Current Liabilities – Short-term liabilities listed on the balance sheet

Other Liquidity Calculators

All liquidity calculators give a temperature check on a company's ability to stay liquid by paying off creditors on liabilities due in the next year. Here are some other tools showing liquidity ratios:

      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK is in his mid-30s and works and lives in the Bay Area with his wife, two kids, and dog.

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