Current Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Current ratio, abbreviated as CR, is a company's ability to pay their short-term obligations with their current assets.

 

Current Ratio Formula

\(\large{ CR =  \frac{ CA }{ CL }   }\)  

Where:

\(\large{ CR }\) = current ratio

\(\large{ CA }\) = current assets

\(\large{ CL }\) = current liabilities

 

Tags: Equations for Manufacturing