The current ratio is calculated by dividing a company's current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency. Because the current ratio compares short-term ...

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See how we rate investing products to write unbiased product reviews. The current ratio measures a company's capacity to pay its short-term liabilities due in one year. The current ratio weighs a ...

The quick ratio compares the value of a company's most liquid assets to the value of its current liabilities so investors can get a sense of how well it can cover its expenses in the short term.