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.

![Image upload](https://cdn.commonstock.com/ae6abf18f9772d6a13a318c2d0eae627c2472055fa9ac90b3067f323aa6cba8f-800x2000.png)

Would you say that the current ratio is used more as a metric than the quick ratio?

Joey Hirendernath

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?

Joshua Simka

Current Ratio

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