A printable cheatsheet with calculations
and notes

Instead of calculating each ratio individually

Let our ratio tool instantly calculate your ratios. Input your financial data once and get multiple results.

Current Ratio Calculator

Current Ratio =

Current Assets

Current Liabilities


The current ratio measures whether a company can pay its short-term obligations within a year.

Business owners and managers use it to determine if a company has enough working capital to cover short-term obligations.

Note: expanded calculation

Current Assets divided by current liabilities. Current assets include cash + cash equivalents + short-term investments + current receivables.


M&M’s balance sheet reported $100,000 of current liabilities and only $25,000 of current assets.

M&M’s current ratio

=25,000 / 100,000 = .25

M&M has enough current assets to pay off 25 percent of its current liabilities. This low ratio means the company may be considered highly risky and too leveraged.


What constitutes a “good” current ratio will vary from company to company, depending on its industry and historical performance.

Generally, a current ratio of 2 or higher is considered good, 1.5 is acceptable, and anything lower than 1.5 is cause for concern.

Current ratio:


ROT: Rule of thumb
HA: Historical Average (organization’s historical average)
PG: Peer Group average
EB: Economic Benchmark

DISCLAIMER: The interactive calculators on this site are self-help tools intended to help you visualize and explore your financial information. They are not intended to replace the advice of a qualified professional. Because each business is different, we can not guarantee accuracy.