Current Ratio Calculator

Primary formula: Current Ratio = Current Assets ÷ Current Liabilities. Working Capital = Current Assets − Current Liabilities. Inputs should be the amounts reported on the same reporting date and in the same currency.

Data quality, input validation, and result presentation should follow recognized practices for accuracy and traceability. For data integrity, apply controls consistent with NIST guidance for system and data integrity. For management system quality and process documentation, align with ISO quality-management principles. For software testing and result validation, follow established IEEE testing and verification recommendations. Use applicable OSHA recordkeeping and data-handling guidance when financial data intersects with regulatory safety reporting.

Accuracy caveats: rounding, classification differences (what is counted as a current asset), and reclassifications between periods materially affect the ratio. The calculator does not perform accounting classification or restatement; it assumes inputs are prepared under consistent accounting policy.

The Current Ratio provides a snapshot of short-term liquidity but should be used with other ratios and trend analysis. One period's ratio is not sufficient to determine financial health without context.

Ensure inputs are consistent in date, currency, and accounting treatment. Review large one-off items and classifications that can distort the measure.

Example 1: Current Assets = 150,000 and Current Liabilities = 75,000. Current Ratio = 150000 ÷ 75000 = 2.0. Working Capital = 150000 − 75000 = 75,000.

Example 2: Current Assets = 50,000 and Current Liabilities = 100,000. Current Ratio = 0.5, indicating current liabilities exceed current assets. Working Capital = −50,000.