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English definition of “current ratio”

current ratio

noun [C]
 
 
( also acid ratio, also acid-test ratio, also liquid ratio)
ACCOUNTING, FINANCE a measure of a company's ability to pay costs and make necessary payments in the near future. The current ratio is calculated by dividing the value of a company's current assets by its current liabilities: This is the highest current ratio that the company has achieved in over 10 years.
(Definition of current ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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