A current ratio is a measure of the liquidity of a business, determined by dividing current assets by current liabilities. The current ratio of a business should be at least 2:1 (twice the current assets to current liabilities).
Current Ratio
By Jean Murray, About.com Guide
More Links
More on Financial Terminology
Explore US Business Law / Taxes
Must Reads
By Category
- Starting Your Business
- Financing Your Business
- Business Organization Types
- 2009 Business Tax Calendar
- Business Taxes
- Business Accounting Records
- Finding a Business Location
- Resolving Business Disputes
- Employment Law and Taxes
- Copyright Trademark Patent
- End, Sell, Change Business
- IRS Tax Forms for Business
- Common Business Terminology
- State and Local Information
About.com Special Features
10 Things You Can Do Today to Improve Your Credit
Easy steps to take control of your credit card debt. More >
Holiday Central
What to eat, where to go, fun things to do and how to save money on the perfect gifts. More >
©2009 About.com, a part of The New York Times Company.
All rights reserved.