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 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)