The formula to calculate the Current Ratio is:
\[ \text{Current Ratio} = \frac{\text{CA}}{\text{CL}} \]
Where:
The Current Ratio helps you to determine if you have enough working capital to meet your short-term financial obligations.
Let's assume the following values:
Using the formula:
\[ \text{Current Ratio} = \frac{79500}{30000} \]
Evaluating:
\[ \text{Current Ratio} = 2.65 \]
The Current Ratio is 2.65.
| Current Assets | Current Liabilities | Current Ratio |
|---|---|---|
| 75000 | 25000 | 3.00 |
| 75000 | 30000 | 2.50 |
| 75000 | 35000 | 2.14 |
| 80000 | 25000 | 3.20 |
| 80000 | 30000 | 2.67 |
| 80000 | 35000 | 2.29 |
| 85000 | 25000 | 3.40 |
| 85000 | 30000 | 2.83 |
| 85000 | 35000 | 2.43 |