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Current Ratio Calculator
Measure a company's ability to cover short-term obligations with short-term assets. Enter any US-listed ticker to pull current assets and liabilities from live balance sheet data — or input values manually — then see the current ratio with a tier verdict and industry benchmarks.
Enter a ticker to calculate Current Ratio
Try AAPL, WMT, or any US-listed company. The calculator fetches live balance sheet data and computes the current ratio with a liquidity tier verdict instantly.
RELATED TOOL
Screen stocks by current ratio →Mid-cap stocks ranked by current ratio with four liquidity tiers — Very Strong, Healthy, Adequate, and Weak.
What Is the Current Ratio?
The current ratio is a fundamental liquidity metric showing how many dollars of short-term assets a company holds for every dollar of short-term obligations. The formula is simple:
| Term | What it means |
|---|---|
| Current Assets | Cash, receivables, inventory — anything convertible to cash within 12 months |
| ÷ Current Liabilities | Payables, short-term debt, accrued expenses — obligations due within 12 months |
| = Current Ratio | Dollars of liquid assets per dollar of short-term obligation — higher is generally safer |
A current ratio above 1.0 means the company can cover its near-term obligations without selling long-term assets or taking on new debt. Ratios above 2.0 are typically considered strong. However, a very high ratio (above 4–5×) can sometimes indicate the company is hoarding cash rather than deploying it productively. Context and trend matter more than any single snapshot.
How to Use This Calculator
Enter a ticker or go manual
Type any US-listed ticker to auto-populate current assets and current liabilities from live balance sheet filings — or switch to Manual to enter your own numbers.
Read the ratio
The calculator shows the current ratio as a multiple (e.g. 2.1×). This tells you how many dollars of liquid assets back each dollar of short-term liabilities.
Check the tier verdict
The verdict — Strong, Good, Adequate, or Weak — gives instant context relative to the four standard liquidity thresholds used in fundamental analysis.
Compare to benchmarks
Use the current ratio screener to compare across peers in the same sector. Industry context matters — a 1.1× ratio is fine for a utility but concerning for a manufacturer.
Key Concepts
Current ratio vs. quick ratio
The current ratio includes all current assets, including inventory. The quick ratio strips inventory (and prepaid expenses) before dividing by current liabilities. For companies with slow-moving inventory — manufacturers, retailers — the quick ratio gives a more conservative and often more meaningful liquidity read.
Current ratio vs. working capital
The current ratio is a relative measure (a multiple), while working capital is an absolute dollar amount. A large company might have $5B of working capital but a current ratio of just 1.1×. Both metrics are useful — the ratio shows proportional adequacy; working capital shows the size of the buffer.
When low ratios are fine
Subscription businesses, utilities, and large retailers often operate below 1.2× by design. Companies with predictable cash flows, long supplier credit terms, or upfront customer payments don't need large liquidity cushions. Always ask whether a low ratio is a structural feature or a warning sign.
Trend is more important than level
A current ratio of 1.8× declining from 2.4× over four quarters is more informative than a static reading. Deteriorating liquidity — even when still above 1.0× — can signal rising short-term debt, accumulating payables, or slowing receivables collection. Always review the trend alongside the level.
Frequently Asked Questions
What is the current ratio?
The current ratio = Current Assets ÷ Current Liabilities. It measures how many dollars of liquid assets a company holds per dollar of short-term obligations. A ratio above 1.0 means the company can cover near-term obligations from current assets.
What is a good current ratio?
≥2.0× is Strong; 1.5–1.99× is Good; 1.0–1.49× is Adequate; <1.0× is Weak. Acceptable levels vary by industry — tech companies often run above 2×, while utilities may run below 1.2× with no concern.
What is the difference between the current ratio and the quick ratio?
The quick ratio strips inventory and prepaid expenses from current assets before dividing by current liabilities. It is more conservative and preferred for inventory-heavy industries. The current ratio is broader and easier to compute.
FINISHED THE NUMBERS?
A calculator gives you one number. The report gives you the argument.
Liquidity in context — whether the current ratio is tightening, what the balance sheet signals about near-term risk, and how the company's liquidity compares to peers — on any public company.
See a sample report →