Current Ratio Calculator
This ratio addresses the question of the business having enought current assests to pay its current debts. A generally acceptable current ratio is 2 to 1. But whether or not a specific ratio is satisfactory depends on the nature of the business and the characteristics of its current assets and liabilities. The minimum acceptable current ratio is obviously 1:1, but that relationship is usually playing it too close for comfort as it doesn't take into consideration market changes.
The Current Ratio is one of the best known measures of financial strength and is calculated with the following method:
Current Ratio = Total Current Assets / Total Current Liabilities
If you fee your business's current ratio is too low, contact Barry Kieran on 047 84955 or Linda Scott on 049 4371211 for advice.