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current ratio

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.17 sec.

current ratio

In a company, the ratio of current assets to current liabilities. It is a general indication of the solvency of a company, the adequacy of its working capital, and its ability to meet day-to-day calls upon it.



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? Mentioned in ? References in periodicals archive
 
The hospital industry reacted favorably to the news that the current ratio will hold for three more years.
TOUGHER NURSE-PATIENT RATIOS DELAYED UNTIL 2008 by Daily News (Los Angeles, CA)
The current ratio is one nurse to 347 patients, but chief nursing officer Sarah Mullally says the recommendation was based on a 1970's USA study and 'it is not clear how applicable that is to the NHS today'.
No more infection control by Australian Nursing Journal
A typical bank revolving loan covenant, for example, may set out the following requirements: a minimum amount of shareholders' equity, a maximum debt-to-equity ratio, and/or a minimum current ratio.
Balance sheet becomes breeding ground for fraud by Lundelius, Charles R., Jr. / Journal of Accountancy
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