A liquidity metric calculated by dividing current assets by current liabilities. It measures a company's ability to pay short-term obligations within one year. A ratio above 1.0 indicates the company has more current assets than current liabilities.
A liquidity metric calculated by dividing current assets by current liabilities. It measures a company's ability to pay short-term obligations within one year. A ratio above 1.0 indicates the company has more current assets than current liabilities.