# Current Ratio Calculator

This **Current Ratio Calculator** helps calculates your current ratio by dividing current assets and current liabilities. The **current ratio** is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. In most cases, a current ratio between **1.5** and **3** is considered acceptable. Some investors or creditors may look for a slightly higher figure.

By contrast, a current ratio of less than **1** may indicate that your business has liquidity problems and may not be financially stable. If the company's current ratio is too high, it may indicate that the company is not efficiently using its current assets or its short-term financing facilities.

## How to calculate the current ratio?

**Formula:** Current Ratio = Current Assets/Current Liabilities