Current Ratio Calculator
Compare current assets with current liabilities to see how comfortably short-term obligations are covered.
Current Ratio Calculator
Current Assets
—
Current Liabilities
—
Working Capital
—
Assets per ₹1 of Liabilities
—
Current Ratio
—
Assets vs. liabilities
Where the ratio sits (0× to 4×+)
Current Assets Needed for Different Ratios
| Target ratio | Assets needed (₹) | Surplus / (shortfall) (₹) |
|---|
Assumptions & method
- Formula: Current ratio = Current assets ÷ Current liabilities. Working capital = Current assets − Current liabilities.
- Current means expected to be converted to cash, used up, or settled within about twelve months. Classify items the same way your accounts do.
- Itemised mode simply adds the lines you enter. Blank lines count as zero; negative amounts are not accepted.
- Interpretation bands are general reference points only: below 1×, 1× to 1.5×, 1.5× to 2×, 2× to 3×, and above 3×. Healthy levels vary by industry and business model.
- The ratio is a snapshot at one date and does not reflect the quality or timing of individual assets and liabilities.
- Currency is shown in ₹ for display only; the ratio itself is unit-free.
The current ratio is a general liquidity indicator, not a standalone credit decision. Results are estimates based on the figures you enter, not guarantees or advice.
What is the current ratio?
The current ratio asks a simple question: if everything due within the next year came due together, are there enough assets that are meant to turn into cash within the same year? Above 1× the assets are larger than the obligations; below 1× they are smaller. The number says little about the mix, though. A business whose current assets are mostly cash is in a very different position from one whose assets are mostly slow-moving stock, even at the same ratio. That is why this page also offers an itemised mode and a table of assets needed for common targets. Treat the result as one liquidity signal, to be read with cash flow, payment terms and industry norms, and not as a standalone credit decision.