Current Ratio
Current ratio compares your current assets (cash, accounts receivable, inventory) to your current liabilities (bills due soon). A ratio of 1.5 means you have $1.50 available for every $1.00 you owe. It answers the critical question: can my business survive a slow month?
Formula
Current Assets / Current Liabilities
In plain English
How many dollars you have available for every dollar of bills due soon
Why Current Ratio Matters
This metric tells you if you have enough cash cushion to handle unexpected expenses or a slow sales month. Too low and you might struggle to pay bills. Too high and you might be sitting on cash that could be invested in growth.
Current Ratio by Industry
Choose your industry to see specific benchmarks, examples, and improvement strategies
Current Ratio for Cleaning Companies
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for Salons & Spas
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for Restaurants
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for HVAC Contractors
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for Marketing Agencies
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for Consulting Firms
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for Freelancers
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for Creative Agencies
How much money you have available to pay bills due in the next 30-90 days
Current Ratio for IT Services
How much money you have available to pay bills due in the next 30-90 days
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