current ratio

noun

Current assets divided by current liabilities; a measure of a company's ability to cover its current or short-term financial obligations.

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Meanings

nouncurrent ratio (plural current ratios)

plural current ratios

  1. businessCurrent assets divided by current liabilities; a measure of a company's ability to cover its current or short-term financial obligations.
Cite this entry
APA

current ratio. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/current%20ratio

MLA

“current ratio.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/current%20ratio. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “current ratio,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/current%20ratio.

Source: current ratio on Wiktionary, CC BY-SA 4.0.