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Meaning of “current ratio” in the English Dictionary

"current ratio" in Business English

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current rationoun [C]

uk   us   (also acid ratio, also acid-test ratio, also liquid ratio)
ACCOUNTING, FINANCE a ​measure of a company's ​ability to ​paycosts and make necessary ​payments in the near future. The ​currentratio is ​calculated by ​dividing the ​value of a company's ​currentassets by its ​current liabilities: This is the ​highestcurrentratio 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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