Current Ratio

[Cami]

The current ratio is a liquidity ratio that measures a companys ability to cover its short-term obligations with its current assets.

[Hina Muqadas]

a measure of a companys ability to pay costs and make necessary payments in the near future. The current ratio is calculated by dividing the value of a companys current assets by its current liabilities:

[Merna]

The ratio of current assets divided by current liabilities that shows the ability of a utility to pay its current obligations from its current assets. A measure of liquidity, the higher the ratio, the more assurance that current liabilities can be paid.