In many cases, a company with a current ratio of less than 1.00 does not have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater ...

Current Ratio = 1.25 Now that you know the current ratio, you can use it as part of your analysis of the company. The following section explains exactly how to use the current ratio in your analysis.

Current Ratio Formula CR = Current Assets / Current Liabilities Current Ratio Example: Apple (NASDAQ: AAPL) Let’s calculate Apple’s current ratio as of March 27th, 2021. To calculate the ...

While a high Current Ratio is generally positive, an excessively high ratio may indicate underutilized assets. It’s essential to consider industry norms and the company’s specific circumstances.