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The ratio is traditionally used to measure a company's liquidity.
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The
ratio is traditionally used to measure a company's liquidity.

User Mohammad Siavashi
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1 Answer

9 votes

Answer:

Current Ratio

Explanation:

The current ratio is a liquidity ratio that measures how able a company is to pay short-term obligations, or current liabilities, with its current assets.

The formula is
Current\:Ratio=(Current\:Assets)/(Current\:Liabilities)

User Hamid Heydarian
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