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.
Put it into practice — open a free account.
Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.