Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay off its short-term liabilities or debts with its current assets. It is an important indicator of a company's financial health and liquidity position. The current ratio is calculated by dividing a company's current assets by its current liabilities.

Current Ratio = Current Assets / Current Liabilities

Where:

Current Assets: Assets that can be converted into cash within one year or one operating cycle, whichever is longer. Current assets typically include cash and ________ _________ __________ _____ __________ ________ __________ ___ ______ _________.
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