Formule Current Ratio. Current assets are resources that can quickly be converted into cash within a year's time or less. And even if you ask any new investor, she will tell you about this ratio for sure.
Current ratio = current assets ÷ current liabilities.
If your current ratio is high, meaning anywhere above 1, then the company is capable of. Current ratio = current assets ÷ current liabilities. You will learn how to use this ratio's formula to draw a. The current ratio is calculated by taking the dollar value of a firm's current assets and looking at the chart below, it is clear that the current ratio formula penalizes such.
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