Current Ratio
InvestingCurrent assets divided by current liabilities, measuring a company's ability to pay short-term obligations.
Example
Example: Consider an investor building a $100,000 portfolio. Current Ratio — current assets divided by current liabilities, measuring a company's ability to pay — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.