Financial ratio tool
Current Ratio Calculator
Calculate the current ratio using current assets and short-term liabilities to estimate short-term liquidity strength.
Calculator
Current ratio calculator
Enter current assets and short-term liabilities to calculate current ratio and net working capital.
Results provide a general financial interpretation. Sector average, company structure and period-specific conditions should also be considered.
Current ratio formula
- Current ratio
- Current assets / short-term liabilities
- Net working capital
- Current assets - short-term liabilities
Example current ratio calculation
If a company has 1,000,000 TRY in current assets and 500,000 TRY in short-term liabilities, the current ratio is 2.00. Net working capital is 500,000 TRY.
Frequently asked questions
What is current ratio?
Current ratio is a liquidity ratio calculated by dividing current assets by short-term liabilities.
What is a good current ratio?
A current ratio above 1 is generally considered more positive for short-term debt coverage, but the ideal level may vary by sector.
Is current ratio enough on its own?
No. It should be evaluated together with quick ratio, cash ratio, leverage and profitability ratios.