Test short-term liquidity: current assets against current liabilities.
Please do not make financial decisions based on these results.
What is the Current Ratio Calculator?
Test short-term liquidity: current assets against current liabilities. To use the Current Ratio Calculator, enter current assets, current liabilities; it returns current ratio, working capital, and shows them instantly as you type.
From revenue to cash flow
Work down the income statement: gross margin, operating margin, EBITDA and net margin. Then confirm profit is real cash with the free cash flow calculator and the accrual ratio.
Efficiency ratios show how fast money turns. The Cash Conversion Cycle Calculator combines DSO, DIO and DPO into one number of days.
- Costs. Marginal cost, average variable cost and the optimal price tools support pricing decisions.
- Elasticity. Price, cross-price and income elasticity show how demand reacts.
How to use the Current Ratio Calculator
- Enter your numbers. The inputs are Current assets ($), Current liabilities ($). Use numbers from the same accounting period so the ratios are comparable. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Current ratio, and the cards below show Working capital. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Current Ratio Calculator using the default values shown in the calculator above:
Inputs
| Current assets ($) | 900,000 |
|---|---|
| Current liabilities ($) | 500,000 |
Results
| Current ratio | 1.8 |
|---|---|
| Working capital | $400,000.00 |
With these inputs the calculator returns Current ratio: 1.8. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Current assets ($) from 900,000 to 1,080,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Current ratio | 1.8 | 2.16 | +20% |
| Working capital | $400,000.00 | $580,000.00 | +45% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Current Ratio Calculator reports Current ratio and working capital. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a good current ratio?
Between 1.5 and 2 is often considered healthy.
What is the difference between EBIT and EBITDA?
EBITDA also adds back depreciation and amortization, so it approximates operating cash profit.
Which accounting standard do the formulas follow?
They use the common textbook definitions that apply under both US GAAP and IFRS unless a tool says otherwise.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related accounting & microeconomics calculators
- Cash Ratio Calculator
- Financial Leverage Ratio Calculator
- Fixed Asset Turnover Ratio Calculator
- Accrual Ratio Calculator
- Working Capital Turnover Ratio Calculator
- Receivables Turnover Ratio Calculator
- Cash Flow to Debt Ratio Calculator
- Net Operating Assets Calculator
- Total Asset Turnover Calculator
- Working Capital Calculator
- Accounting Profit Calculator
- Economic Profit Calculator
All Accounting & Microeconomics calculators →