The formula to calculate Current Ratio (CR) is:
\[ CR = \frac{CA}{CL} \]
Where:
The Current Ratio helps you to determine if you have enough working capital to meet your short-term financial obligations.
Current Assets are balance sheet accounts that represent the value of all assets that can reasonably be expected to be converted into cash within one year.
Current Liabilities are the company debts or obligations that are due within one year.
Let's assume the following values:
Using the formula:
\[ CR = \frac{CA}{CL} \]
Evaluating:
\[ CR = \frac{79500}{30000} \]
The Current Ratio is 2.65.
| Current Assets (CA) | Current Liabilities (CL) | Current Ratio (CR) |
|---|---|---|
| 70000 | 25000 | 2.80 |
| 70000 | 30000 | 2.33 |
| 70000 | 35000 | 2.00 |
| 71000 | 25000 | 2.84 |
| 71000 | 30000 | 2.37 |
| 71000 | 35000 | 2.03 |
| 72000 | 25000 | 2.88 |
| 72000 | 30000 | 2.40 |
| 72000 | 35000 | 2.06 |
| 73000 | 25000 | 2.92 |
| 73000 | 30000 | 2.43 |
| 73000 | 35000 | 2.09 |
| 74000 | 25000 | 2.96 |
| 74000 | 30000 | 2.47 |
| 74000 | 35000 | 2.11 |
| 75000 | 25000 | 3.00 |
| 75000 | 30000 | 2.50 |
| 75000 | 35000 | 2.14 |
| 76000 | 25000 | 3.04 |
| 76000 | 30000 | 2.53 |
| 76000 | 35000 | 2.17 |
| 77000 | 25000 | 3.08 |
| 77000 | 30000 | 2.57 |
| 77000 | 35000 | 2.20 |
| 78000 | 25000 | 3.12 |
| 78000 | 30000 | 2.60 |
| 78000 | 35000 | 2.23 |
| 79000 | 25000 | 3.16 |
| 79000 | 30000 | 2.63 |
| 79000 | 35000 | 2.26 |
| 80000 | 25000 | 3.20 |
| 80000 | 30000 | 2.67 |
| 80000 | 35000 | 2.29 |