Current Ratio Calculator

Liquidity

Updated Apr 2026 • Has calculator

Measures a company's ability to cover short-term liabilities with short-term assets.

Calculate Current Ratio

Current Assets

Total current assets (USD millions)

Current Liabilities

Total current liabilities (USD millions)

Current Ratio

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Not investment advice.

What is Current Ratio?

The current ratio divides current assets by current liabilities, providing a snapshot of near-term liquidity. A ratio above 1 means the company has more short-term assets than short-term obligations. However, some highly efficient businesses — particularly large consumer companies with predictable cash flows — routinely operate with ratios below 1 because they can quickly convert operations to cash. Like all liquidity metrics, the current ratio is most informative when benchmarked against industry peers and tracked over time.

Formula

Current Ratio = Current Assets ÷ Current Liabilities

Worked Example

FY2024 (Sept 28, 2024)

Step 1 Total current assets: $152,987M

Step 2 Total current liabilities: $176,392M

Step 3 Current ratio = $152,987M ÷ $176,392M = 0.87x

Step 4 → Apple covers short-term needs via its massive operating cash flow

Source: Apple Annual Report FY2024 (2024-11-01)

How to Interpret Current Ratio

< 1

Below 1 — liabilities exceed current assets

1 – 1.5

Adequate — meets near-term obligations

1.5 – 3

Strong — comfortable liquidity cushion

> 3

Very strong — ample liquidity (or idle assets)

📚 Leverage & Liquidity — Complete the path

Sources