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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Current ratio  

Definition 1.

Indicator of short-term debt-paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company.
 

Definition 2.

Indicator of company's ability to pay short-term obligations; calculated by dividing current assets by current liabilities.
 

Definition 3.

Current assets divided by current liabilities. An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is.
 
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