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Current Ratio
Want to measure a company's ability to pay its short-term debts? Look no further than the current ratio!

The current ratio highlights the company's liquidity by comparing its current assets to current liabilities. A ratio > 1 indicates a strong position, while < 1 not so much.

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Joey Hirendernath's avatar
Joey Hirendernath
@joeyhirendernathMay 4
Would you say that the current ratio is used more as a metric than the quick ratio?
Joshua Simka's avatar
Joshua Simka
@tomatoMay 5
I always think of financial companies and banks when I see the current ratio and quick ratio. Are these metrics useful across other industries as well?
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