123k views
17 votes
The
ratio is traditionally used to measure a company's liquidity.

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
by
4.6k points