Liquidity
What is Current Ratio?
The current ratio measures a company's ability to pay short-term obligations with its short-term assets, a basic test of financial health.
Formula
Current Ratio = Current Assets ÷ Current Liabilities
How to Interpret
A ratio above 1 means the company can cover its short-term debts. Too high (>3) may suggest inefficient use of assets.
Typical Ranges
1.5-3.0 is healthy. Below 1.0 is a red flag. Banks are excluded.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Current Ratio.