Current Ratio Calculator

Current ratio = current assets / current liabilities. Defaults: 57 of current assets against 100 of current liabilities gives 0.57x. A ratio above 1 means short-term assets cover short-term obligations.

Current ratio is conventionally quoted as a multiple (like 0.57x) rather than a percentage, since that is how lenders and analysts read it on financial statements. The percent version is shown too, for reference.

Use whatever current liabilities figure matches the period or balance sheet date you are analyzing, and make sure current assets covers the same period so the ratio is apples-to-apples.

Generally yes for current ratio -- more cushion is safer. But an unusually high ratio can also mean a company is sitting on idle capital instead of deploying it, so compare against industry norms rather than assuming bigger is always better.