NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)

What is Current Ratio?

Current Ratio — Current assets divided by current liabilities — a liquidity check on whether a company can meet its short-term dues. Above 1 is comfortable.

In simple terms

A current ratio of 1.5 means ₹1.5 of current assets per ₹1 of short-term dues.

Why Current Ratio matters when you invest

Understanding current ratio helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.

Current Ratio — frequently asked questions

What is Current Ratio?

Current assets divided by current liabilities — a liquidity check on whether a company can meet its short-term dues. Above 1 is comfortable.

What does Current Ratio mean in the stock market?

Current assets divided by current liabilities — a liquidity check on whether a company can meet its short-term dues. Above 1 is comfortable. A current ratio of 1.5 means ₹1.5 of current assets per ₹1 of short-term dues.

Can you give an example of Current Ratio?

A current ratio of 1.5 means ₹1.5 of current assets per ₹1 of short-term dues.

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