The ratio is traditionally used to measure a company's liquidity.

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asked Dec 4, 2023 123k views

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Hamid Heydarian · Answer 1 · 2023-12-10T22:21:50+0000

Answer:

Current Ratio

Explanation:

The current ratio is a liquidity ratio that measures how able a company is to pay short-term obligations, or current liabilities, with its current assets.

The formula is
$Current\:Ratio=(Current\:Assets)/(Current\:Liabilities)$

The ratio is traditionally used to measure a company's liquidity.

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