{"id":10292,"date":"2023-04-06T13:31:04","date_gmt":"2023-04-06T08:01:04","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10292"},"modified":"2023-04-06T13:31:46","modified_gmt":"2023-04-06T08:01:46","slug":"current-ratio","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/current-ratio\/","title":{"rendered":"Current Ratio &#8211; Meaning, Formula, Calculation with Examples, Pros and Cons"},"content":{"rendered":"\n<p>Numerous accounting measures, ratios, and formulas can help determine a company\u2019s solvency, liquidity, and profitability. These metrics can also help have a holistic view of a company\u2019s current assets and liabilities.&nbsp;<\/p>\n\n\n\n<p>The current ratio measures a company\u2019s current assets against its current liabilities. Here\u2019s everything to know more about current ratios, how to calculate them, and how they are useful in determining a company\u2019s financial health.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"700\" height=\"400\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-2.png\" alt=\"\" class=\"wp-image-10337\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-2.png 700w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-2-300x171.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-2-300x171@2x.png 600w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/www.elearnmarkets.com<\/figcaption><\/figure><\/div>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#What-is-the-current-ratio\" title=\"What is the current ratio?\">What is the current ratio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Current-Ratio-Main-Highlights\" title=\"Current Ratio &#8211; Main Highlights\">Current Ratio &#8211; Main Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Importance-of-current-ratio\" title=\"Importance of current ratio\">Importance of current ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Current-ratio-formula\" title=\"Current ratio formula\">Current ratio formula<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Interpretation-of-current-ratio\" title=\"Interpretation of current ratio\">Interpretation of current ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Drawbacks-to-the-current-ratio\" title=\"Drawbacks to the current ratio\">Drawbacks to the current ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#How-to-calculate-the-current-ratio-from-the-balance-sheet\" title=\"How to calculate the current ratio from the balance sheet?\">How to calculate the current ratio from the balance sheet?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Current-ratio-example-calculation\" title=\"Current ratio example calculation\">Current ratio example calculation<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/current-ratio\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-current-ratio\"><\/span><strong>What is the current ratio?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The current ratio is a ratio used to ascertain a company\u2019s short-term liquidity.<\/p>\n\n\n\n<p>The current ratio assesses a company\u2019s capacity to settle short-term debt or obligations due within a year. Also known as the working <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> ratio, this ratio can help analysts and investors to apprehend a company\u2019s ability to utilise its current assets to pay off its existing debt or fulfil other obligations.<\/p>\n\n\n\n<p>A current ratio higher than the industry&#8217;s average can be deemed satisfactory. Any ratio lower than the industry average may signify a risk of default.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-7846f977\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Current-Ratio-Main-Highlights\"><\/span><strong>Current Ratio &#8211; Main Highlights<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>The current ratio is a liquidity ratio that evaluates a company\u2019s capacity to pay off short-term debt.<\/li>\n\n\n\n<li>Creditors, analysts, and investors use the current ratio to analyse if a company can meet its short-term obligations or debt.<\/li>\n\n\n\n<li>A current ratio greater than the industry average is considered satisfactory. Any ratio less than the industry ratio indicates a high risk of default.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-current-ratio\"><\/span><strong>Importance of current ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The current ratio is used by creditors, analysts and investors to determine if a company can fulfil its short-term obligations.<\/li>\n\n\n\n<li>It allows analysts to understand a company\u2019s financial standing in terms of assets and liabilities.<\/li>\n\n\n\n<li>It provides information on the short-term liquidity of a company.&nbsp;<\/li>\n\n\n\n<li>This ratio, in combination with other liquidity ratios, can indicate the true standing of a company.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Current-ratio-formula\"><\/span><strong>Current ratio formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The current ratio formula is mentioned below:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"331\" height=\"152\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-1.png\" alt=\"\" class=\"wp-image-10336\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-1.png 331w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/image-1-300x138.png 300w\" sizes=\"(max-width: 331px) 100vw, 331px\" \/><\/figure><\/div>\n\n\n<p><strong>Current ratio = Current assets \/ Current liabilities<\/strong><\/p>\n\n\n\n<p>Typically, current assets include cash and cash equivalent, cash at the bank, <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">stock<\/a>, accounts receivable, inventory, and other assets that can be converted into cash or liquidated within 12 months. On the other hand, current liabilities include <a href=\"https:\/\/www.tickertape.in\/glossary\/accounts-payable\/\">accounts payable<\/a>, bank overdrafts, short-term debt and any other liabilities due for the year.&nbsp;<\/p>\n\n\n\n<p>Using <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=glossary&amp;utm_medium=article&amp;utm_campaign=\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape Stock Screener<\/a>, you can get the &#8216;Current Ratio&#8217; of a company easily. Not just that, there are over 200+ filters on the Stock Screener which can make your stock analysis quick and effective. <\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Interpretation-of-current-ratio\"><\/span><strong>Interpretation of <\/strong><strong>current ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The current ratio indicates the following:<\/p>\n\n\n\n<ul>\n<li>If current assets exceed current liabilities, i.e., the ratio is higher than 1.0, it indicates the ability of a corporation to meet its obligations. It may also imply that the company is optimally using its current assets or managing its working capital satisfactorily.<\/li>\n\n\n\n<li>If current assets are less than current liabilities, i.e. the ratio is less than 1.0, it can indicate that the company does not have enough cash or liquidity to meet its short-term obligations and debts.<\/li>\n\n\n\n<li>If current assets equal current liabilities, i.e. the ratio equals 1.0, then it implies that the company can cover its obligations for the concerned year\/period.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Drawbacks-to-the-current-ratio\"><\/span><strong>Drawbacks to the <\/strong><strong>current ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The current ratio does not account for long-term liabilities or assets of different nature. As a result, this ratio cannot give an accurate picture of a company\u2019s total assets or liabilities.<\/li>\n\n\n\n<li>The current ratio individually may not suffice to determine a company\u2019s liquidity. This is because it is based on the quantity of assets and doesn\u2019t consider quality.<\/li>\n\n\n\n<li>Often inventory is also considered while calculating the current ratio. In some circumstances, this might lead to overestimating a company\u2019s liquidity. This is because certain companies may have high inventory due to low sales. In such cases, this ratio can then lead to incorrect computation.<\/li>\n\n\n\n<li>The current ratio poses a problem for companies with seasonal revenues. It may indicate a lower ratio in some months and higher in others.<\/li>\n\n\n\n<li>Sometimes a company might change its inventory valuation, impacting the current ratio.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-calculate-the-current-ratio-from-the-balance-sheet\"><\/span><strong>How to calculate the current ratio from the balance sheet?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On the balance sheet, you will readily find current assets and liabilities recorded and accounted for separately. You can pick the values and insert them into the formula to calculate the current ratio.<\/p>\n\n\n\n<p>Also, some companies present liabilities, profitability and other ratios in their annual and quarterly reports. You can refer to them to understand the current ratio of the concerned company.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Current-ratio-example-calculation\"><\/span><strong>Current ratio<\/strong><strong> example calculation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let us understand the current ratio with an example.&nbsp;<\/p>\n\n\n\n<p>For instance, assume Company A has the following current assets:<\/p>\n\n\n\n<ul>\n<li>Cash = Rs. 20 lakh<\/li>\n\n\n\n<li>Inventory = Rs. 22 lakh<\/li>\n\n\n\n<li>Marketable securities = Rs. 15 lakh&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Current liabilities of the same company are as mentioned below:<\/p>\n\n\n\n<ul>\n<li>Short-term debt = Rs. 30 lakh<\/li>\n\n\n\n<li>Accounts payable = Rs. 10 lakh<\/li>\n<\/ul>\n\n\n\n<p>The total current assets and liabilities would be as follows:<\/p>\n\n\n\n<ul>\n<li>Total current assets= 20+22+15 =Rs. 57 lakh<\/li>\n\n\n\n<li>Total current liabilities= 30+10 = Rs. 40 lakh<\/li>\n<\/ul>\n\n\n\n<p>So, according to the formula:<\/p>\n\n\n\n<p><strong>Current ratio= Rs. 57 lakh \/ Rs. 40 lakh = 1.455<\/strong><\/p>\n\n\n\n<p>Company A has a current ratio of ~1.4. This suggests that it can readily settle its short-term obligations or liabilities.&nbsp;&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Companies can utilise the current ratio to assess their short-term liquidity. The current ratio assesses a company\u2019s ability to satisfy its current obligations, which are normally due within a year. The higher the assets, the higher the current ratio. It is ideal for companies to have a current ratio of more than 1. However, this ratio should be considered along with a set of other financial ratios and statements to fully assess a company\u2019s standing.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-2e774bd2 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-88608497\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is a good current ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">A ratio between 1.2 to 2 is generally considered a good current ratio.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-1239c985\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is the ideal current ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">A ratio of 2 is considered to be ideal. This implies that a company can meet its obligations nearly twice.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-239c0c6a\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How to improve the current ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">By restructuring debt and short-term liabilities, companies can improve their current ratio. Also, increasing assets can push the ratio higher.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-154fe096\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Why do creditors use the current ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Creditors use this ratio to determine if a company can be provided with short-term debt. It demonstrates a company&#8217;s ability to transform assets into cash in order to pay short-term creditors.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-7d51c17b\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Can the current ratio be negative?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Yes. A current ratio of less than one indicates that current liabilities outweigh current assets and that working capital is negative.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The current ratio measures a company\u2019s current assets against its current liabilities. Here\u2019s everything to know more about current ratios, how to calculate them, and how they are useful in determining a company\u2019s financial health.<\/p>\n","protected":false},"author":96,"featured_media":10315,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/04\/2-1-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Nikitha","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"The current ratio measures a company\u2019s current assets against its current liabilities. Here\u2019s everything to know more about current ratios, how to calculate them, and how they are useful in determining a company\u2019s financial health.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10292"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/96"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10292"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10292\/revisions"}],"predecessor-version":[{"id":10341,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10292\/revisions\/10341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/10315"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}