Current ratio - Revision history

imported>Doug Williamson: Add link.

2019-02-06T11:08:42Z

Add link.

← Older revision		Revision as of 11:08, 6 February 2019
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	* [[Liquidity ratio]]		* [[Liquidity ratio]]
	* [[Quick ratio]]		* [[Quick ratio]]
			* [[Ratio analysis]]

	[[Category:Accounting,_tax_and_regulation]]		[[Category:Accounting,_tax_and_regulation]]
	[[Category:The_business_context]]		[[Category:The_business_context]]
	[[Category:Liquidity_management]]		[[Category:Liquidity_management]]

imported>Doug Williamson: Add header.

2019-02-03T19:05:41Z

Add header.

← Older revision		Revision as of 19:05, 3 February 2019
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			''Financial ratio analysis - liquidity ratios.''

	Current assets / Current liabilities.		Current assets / Current liabilities.

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	* [[Current liabilities]]		* [[Current liabilities]]
	* [[Liquidity]]		* [[Liquidity]]
			* [[Liquidity ratio]]
	* [[Quick ratio]]		* [[Quick ratio]]

			[[Category:Accounting,_tax_and_regulation]]
			[[Category:The_business_context]]
	[[Category:Liquidity_management]]		[[Category:Liquidity_management]]

imported>Doug Williamson: Add link to Balance sheet ratio page.

2017-02-10T10:26:47Z

Add link to Balance sheet ratio page.

← Older revision		Revision as of 10:26, 10 February 2017
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	== See also ==		== See also ==
			* [[Balance sheet ratio]]
	* [[Current assets]]		* [[Current assets]]
	* [[Current liabilities]]		* [[Current liabilities]]

imported>Doug Williamson: Standardise appearance of page

2015-03-18T12:09:23Z

Standardise appearance of page

← Older revision		Revision as of 12:09, 18 March 2015
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	Current assets ~~÷~~ Current liabilities.		Current assets / Current liabilities.

	The current ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.		The current ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.
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	If the current ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets.		If the current ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets.

	~~For example, if current~~ assets ~~are~~ £5m ~~and current~~ liabilities ~~are~~ £4m~~, the Quick~~ ratio = 5/4 = 1.25.
			'''Example'''

			Current assets = £5m.

			Current liabilities = £4m.

			The current ratio is:

			= 5 / 4

			= 1.25.

imported>Doug Williamson: Category added 9/10/13 and spacing

2013-10-09T10:23:04Z

Category added 9/10/13 and spacing

← Older revision		Revision as of 10:23, 9 October 2013
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	For example, if current assets are £5m and current liabilities are £4m, the Quick ratio = 5/4 = 1.25.		For example, if current assets are £5m and current liabilities are £4m, the Quick ratio = 5/4 = 1.25.


	== See also ==		== See also ==
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	* [[Liquidity]]		* [[Liquidity]]
	* [[Quick ratio]]		* [[Quick ratio]]

			[[Category:Liquidity_management]]

imported>Doug Williamson: Edited from the Glossary for Wiki alignment

2013-03-28T15:00:17Z

Edited from the Glossary for Wiki alignment

← Older revision		Revision as of 15:00, 28 March 2013
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	The current ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.		The current ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.

	If the current ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets.		If the current ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets.

			For example, if current assets are £5m and current liabilities are £4m, the Quick ratio = 5/4 = 1.25.

	== See also ==		== See also ==
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	* [[Liquidity]]		* [[Liquidity]]
	* [[Quick ratio]]		* [[Quick ratio]]

imported>Administrator: CSV import

2012-10-23T14:19:15Z

CSV import

New page

Current assets ÷ Current liabilities.

The current ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.
If the current ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets.

== See also ==
* [[Current assets]]
* [[Current liabilities]]
* [[Liquidity]]
* [[Quick ratio]]