Current Liquidity Ratio Formula

Here is the Current liquidity ratio formula to calculate the current ratio of a company, which is the comparison of a company's current assets to current liabilities. It is calculated by dividing current assets by current liabilities. This current ratio formula requires the values of current liabilities and current assets to find the financial ratio. From this, it is evident that current liabilities and assets are the deciding factors of a company's financial ratio.

Current Ratio Formula


R = A / L


R = Current Ratio
L = Current Liabilties
A = Current Assets

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This current ratio formula page helps you learn the calculation of current ratio and analyze the growth of the organization. Current liquidity ratio formula will be a helpful one for the company to know their ability to pay their debt obligations.

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