Question

Ho to calculate current assets and current liabilities if current ratio is given

Answer 1

The current ratio is a financial ratio that investors and analysts use to examine the liquidity of a company and its ability to pay short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The current ratio is calculated by dividing current assets by current liabilities:

Current Ratio = Current Assets ÷ Current Liabilities



Read more: What is the formula for calculating the current ratio? | Investopedia https://www.investopedia.com/ask/answers/070114/what-formula-calculating-current-ratio.asp#ixzz57RN30CfI 
Follow us: Investopedia on Facebook