The current ratio measures a company's ability to pay short-term obligations, such as those that are due within a year of the measurement date. It demonstrates to investors and analysts how a company may maximize its present assets to pay off its current debt and other payables as rapidly as possible.
Current Ratio Calculation
Current Assets/Current Liabilities is the current ratio.
Cash plus Trade receivables plus Unbilled Revenue = Current Assets.
Assets Current = 564911 + 8158139 + 2679949
$11402,998 is the current asset value.
Current Liabilities are equal to $4318,952 plus $350,000.
Current Liabilities = 7818,952 dollars.
The current ratio is $11402,998 to $7818,952.
1.45 times the current ratio
When all of a company's short-term commitments are due at once, a company with a current ratio below one frequently lacks the capital to fulfill those obligations, whereas a current ratio above one shows that the company has the financial means to satisfy its short-term obligations and remain solvent.
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