Finance CalculatorsBusiness FinanceFree Tool
Current Ratio Calculator
Calculate your current ratio - current assets divided by current liabilities - a standard measure of short-term liquidity.
How to Use Current Ratio Calculator
- 1Enter your total current assets
- 2Enter your total current liabilities
- 3Click Calculate to see your current ratio
Frequently Asked Questions
Current Ratio = Current Assets divided by Current Liabilities. This calculator reports only the ratio itself - it doesn't show the rupee working-capital amount (for that, use the Working Capital Calculator, which uses the same two inputs).
This calculator flags 1.5 or above as healthy, 1.0 or above as low and worth monitoring, and below 1.0 as a sign the business can't cover short-term obligations from current assets alone.
Not necessarily - a very high ratio can also mean excess inventory or slow-moving receivables sitting in current assets. The Quick Ratio Calculator (which excludes inventory) gives a stricter liquidity check.
Current Ratio includes all current assets, including inventory. Quick Ratio subtracts inventory first, since inventory can be slow or difficult to convert to cash.
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