Current Ratio Calculator
Measure your company's short-term liquidity and ability to pay obligations due within one year
💼Financial Inputs
Asset vs Liability Breakdown
Total Current Assets$120,000
Total Current Liabilities$80,000
Your Current Ratio
1.50
Good Liquidity
0.0 (Critical)2.0 (Target)4.0+ (Strong)
Working Capital
$40,000
Above Liabilities
50%
🎯Manufacturing Benchmark
Healthy≥2.0
Acceptable≥1.5
Warning<1.2
💡Recommendations
- •Healthy liquidity - adequate buffer to handle short-term obligations
- •Continue current working capital management practices
- •Monitor accounts receivable aging and inventory turnover
- •Consider opportunities to optimize cash deployment
- •Maintain consistent collection and payment practices
Quick Reference
Formula
Current Assets ÷ Current Liabilities
Healthy Range
1.5 - 3.0 (varies by industry)
Also Known As
Working Capital Ratio, Liquidity Ratio