by Answerbag Staff on May 10th, 2010

Answerbag Staff

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How do i calculate current assets ratio?

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  • by Carter McBride on May 10th, 2010

    Answerbag Experts

    Great Answer

    Professionally Researched. (What's this?)

    Locate the total current assets on a company's balance sheet. For example, a firm has $900,000 current assets.

    Locate the total current liabilities on a company's balance sheet. For example, a firm has $300,000 current assets.

    Divide current assets by current liabilities to determine the current assets ratio. In the example, $900,000 divided by $300,000 equals a current asset ratio of 3.

    Source:

    Money Terms: Current Assets Ratio

    Investopedia: Current Ratio

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