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.

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 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.

What is a good current ratio? A good current ratio should be higher than one. This would indicate that the company can cover its liabilities with its assets. If the current ratio is lower than one, it ...

The first liquidity ratio we examined in digesting Axel Tracy's book, "Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyse Any Business on the Planet," was the current ratio.

Current Ratio Example: Apple (NASDAQ: AAPL) Returning to the example above, let’s take a look at how Apple’s current ratio (as of March 27th, 2021) compared to its quick ratio of 0.83.