# Current Ratio Calculator

The ratio used to measure the ability of a company to pay its short-term liabilities with the short-term assets is called as the current or liquidity ratio. It is calculated by dividing the current assets with the current liabilities.

The components of current ratio namely current assets and current liabilities are used to derive working capital which is the difference between current assets and current liabilities.

## Calculate Liquidity Current Ratio

The ratio used to measure the ability of a company to pay its short-term liabilities with the short-term assets is called as the current or liquidity ratio. It is calculated by dividing the current assets with the current liabilities.

The components of current ratio namely current assets and current liabilities are used to derive working capital which is the difference between current assets and current liabilities.

Code to add this calci to your website

#### Formula:

Current Assets = a + b + c + d + e
Current Liabilities = u + v + w
Liquidity Current Ratio = Current Assets / Current Liabilities
**Where,**
a = Cash and Cash Equivalents
b = Short-term Investments
c = Net Receivables
d = Inventory
e = Other Current Assets
u = Accounts Payable
v = Short-term Debt
w = Other Current Liabilities