Question

What ratio calculates all liabilities of a company minus current assets

Answer 1

The ratio considers the weight of the total current assets. They are commonly used to measure the liquidity of a company. A company's assets on its balance sheet are split into two categories – current assetsand non-current assets (long-term or capital assets). versus the totalcurrent liabilities.


Calculate your current ratio below. Current ratio is a comparison of current assets tocurrent liabilities, calculated by dividing yourcurrent assets by your current liabilities. Potential creditors use the current ratio to measure a company's liquidity or ability to pay off short-term debts.