# Current ratio

> Current ratio is a liquidity and working-capital metric, calculated as Current assets ÷ Current liabilities. > 1 means current assets cover current liabilities — liquidity, not solvency or health.

Source: https://lopifi.com/glossary/current-ratio
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is current ratio?** Current ratio is a liquidity and working-capital metric, calculated as Current assets ÷ Current liabilities.

## Formula

`Current assets ÷ Current liabilities`

## Note

> 1 means current assets cover current liabilities — liquidity, not solvency or health

- **Category:** Liquidity & working capital
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)