Liquidity Ratio


Output: Press calculate

Formula: Liquidity Ratio = Current Assets / Current Liabilities

The Liquidity Ratio is a key indicator of a company's ability to meet its short-term debt obligations with its most liquid assets. It's an important measure of financial health, indicating whether a company has sufficient resources to cover its liabilities due within a year. This ratio is particularly valuable for creditors and investors to assess a company's short-term financial stability.

Tags: Finance, Liquidity, Ratio