MARKETS / GLOSSARY / CURRENT RATIO

Current ratio

Whether what the company can turn into cash within a year covers what it owes within a year. Below one is a signal worth understanding, not a verdict.

Definition

How it is computed here

Formulacurrent assets ÷ current liabilities
UnitMultiple (×)
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifierliquidez_corrente
The limit

What this number does not tell you

The ratio treats all current assets as equally liquid, which inventory is not. Retailers and banks routinely operate below one by design, because their cash arrives faster than their bills.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

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In the data

Highest reported current ratio

From the most recent fiscal year of each company.

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