The current ratio is a financial metric that measures a company's ability to pay short-term obligations with its current assets. It is calculated by dividing current assets by current liabilities. This ratio provides insight into the liquidity and short-term debt-paying ability of a company, making it a key indicator for assessing financial health and stability in the short term.
The Institute of Internal Auditors (IIA), Financial Ratios and Analysis
"Financial Management: Theory & Practice" by Eugene F. Brigham and Michael C. Ehrhardt
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