Current Ratio Calculator
What is a Current Ratio?
When a company's current assets are directly compared to the company's liabilities, it is known as the current ratio. Our current ratio calculator will look at the relationship between these two numbers for the year on year financial trends.
To use our current ratio calculator, follow these simple steps:
- Enter both the asset value and the liability value.
- The calculator will calculate the ratio as you type.
- A graph will be displayed as you enter the data.
How is the Current Ratio Calculated?
Our current ratio calculator will allow you to calculate not only the current ratio but also the historical financial ratios as well as the year on year ratio changes. The calculator will then provide you with the trends and a graph using your financial year on year metrics.
- Take the first year that you have any financial figures for. With our calculator, you are only able to go as far back as 2005.
- Add both the financial data for your assets as well as your liabilities for each year, entering your latest results at the end.
- Our Current Ratio Calculator will then calculate the ratios as well as update the trend graph that is provided as you enter the data.
How to Calculate Your Current Ratio
To calculate your current ratio, simply take your current asset value and divide it by the value of your current liabilities.
Current Ratio = Current Assets / Current Liabilities
What Can Current Ratios Be Used For?
Current Ratios are used to find out whether or not a company is performing at either its best or its worst.
The most effective use of current ratios is when they are compared against historical data. As shown by our current ratio calculator, this will usually be the year-on-year comparison. Most corporations tend to keep a record of their current ratios on either a monthly or quarterly basis.
Check out these other free online investment calculators:
- - EBITDA Calculator
- - Perpetuity Calculator
- - Effective Annual Rate Calculator