1. Current Ratio Formula, Calculation and Examples

    how to solve current ratio problems

  2. Current Ratio Definition, Formula, Analysis and Examples

    how to solve current ratio problems

  3. How to Calculate Current Ratio: 7 Steps (with Pictures)

    how to solve current ratio problems

  4. Ratio Problem Solving

    how to solve current ratio problems

  5. Current Ratio Formula and Examples

    how to solve current ratio problems

  6. How To Work Out Ratio Problems Ks3

    how to solve current ratio problems


  1. Ratio Questions in Maths #maths #railwayexam #mathematics

  2. Calculating current ratio & working capital ratio in Excel

  3. Ratio Analysis/Current Ratio/Liquid Ratio or Quick Ratio/Absolute Liquid Ratio/Problems and Solution

  4. Ratio Hack

  5. Short trick for solving Ratio questions #shorts #tricks #ratio #aptitude #shorttrick #trending

  6. Ratio Analysis || Ratio Analysis Solved Problems ||B.Com June/July 2023 CCMA Question Paper


  1. Current Ratio

    Current ratio = Current assets/Current liabilities = $1,100,000/$400,000 = 2.75 times. The current ratio is 2.75 which means the company's currents assets are 2.75 times more than its current liabilities. Significance and interpretation. Current ratio is a useful test of the short-term-debt paying ability of any business.

  2. Current Ratio Explained With Formula and Examples

    Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the current ...

  3. Current Ratio

    A current ratio of around 1.5x to 3.0x is considered to be healthy, whereas a current ratio below 1.0x is deemed a red flag that implies the near-term liquidity of the company presents risks. The current ratio is different from the quick ratio because the metric is less conservative because the formula includes all current assets, rather than ...

  4. Current Ratio Formula

    Inventory = $25 million. Short-term debt = $15 million. Accounts payables = $15 million. Current assets = 15 + 20 + 25 = 60 million. Current liabilities = 15 + 15 = 30 million. Current ratio = 60 million / 30 million = 2.0x. The business currently has a current ratio of 2, meaning it can easily settle each dollar on loan or accounts payable twice.

  5. Current Ratio

    The current ratio is a very common financial ratio to measure liquidity. Current ratio is equal to total current assets divided by total current liabilities. A ratio greater than 1 means that the company has sufficient current assets to pay off short-term liabilities. A high ratio implies that the company has a thick liquidity cushion.

  6. Current Ratio

    Expressed as a Number. This is arrived at by dividing current assets by current liabilities. For example, if a company's total current assets are $90,000 and its current liabilities are $72,000, its current ratio is $90,000/$72,000 = 1.25. If the current ratio of a business is 1 or more, it means it has more current assets than current ...

  7. How to Calculate (And Interpret) The Current Ratio

    Current ratio = $15,000 / $22,000 = 0.68. That means that the current ratio for your business would be 0.68. A company with a current ratio of less than one doesn't have enough current assets to cover its current financial obligations. XYZ Inc.'s current ratio is 0.68, which may indicate liquidity problems. But that's also not always the ...

  8. Current Ratio

    The current ratio is calculated as the current assets of Colgate divided by the current liability of Colgate. For example, in 2011, Current Assets were $4,402 million, and Current Liability was $3,716 million. = 4,402/3,716 = 1.18x. Likewise, we calculate the Current Ratio for all other years.

  9. Current Ratio

    This ratio expresses a firm's current debt in terms of current assets. So a current ratio of 4 would mean that the company has 4 times more current assets than current liabilities. A higher current ratio is always more favorable than a lower current ratio because it shows the company can more easily make current debt payments. If a company ...

  10. Current Ratio- Formula, Interpretation & Example

    2. Cash & cash equivalent + Marketable securities + Account Receivable. Let's understand it with the help of example. XYZ Company has $400 million in current asset, the inventory costs 50 million. While the liabilities which it need to pay off are $300 million. Quick ratio = CA / CL. = (400 - 50)/300. = 350/300.

  11. Liquidity Ratios

    This finance video tutorial provides a basic introduction into two liquidity ratios - the current ratio and the quick ratio also known as the acid test ratio...

  12. Ratio Problem Solving

    40 \div 8=5 40 ÷ 8 = 5. Then you multiply each part of the ratio by 5. 5. 3\times 5:5\times 5=15 : 25 3 × 5: 5 × 5 = 15: 25. This means that Charlie will get 15 15 sweets and David will get 25 25 sweets. There can be ratio word problems involving different operations and types of numbers.

  13. Current Formula

    According to Ohm's law, the current is the ratio of the potential difference (voltage) and the resistance. Thus, the electric current formula is given by: I = V/R. where. R is the resistance in Ohm (Ω). This current equation can be used to calculate the current in a circuit if the voltage and resistance are known, or to calculate the current ...

  14. Ratios and proportions

    It compares the amount of one ingredient to the sum of all ingredients. part: whole = part: sum of all parts. To write a ratio: Determine whether the ratio is part to part or part to whole. Calculate the parts and the whole if needed. Plug values into the ratio. Simplify the ratio if needed.

  15. Ratio Analysis: Problems and Solutions

    Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. Problem 1: The following is the Balance Sheet of a company as on 31st March: Problem 2: From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio of the business concern: Problem 3: The following is the summarised Profit and ...

  16. Ratio Problem Solving

    Ratio problem solving GCSE questions. 1. One mole of water weighs 18 18 grams and contains 6.02 \times 10^ {23} 6.02 × 1023 water molecules. Write this in the form 1gram:n 1gram: n where n n represents the number of water molecules in standard form. (3 marks)

  17. Ratio and Proportion Word Problems

    This math video tutorial provides a basic introduction into ratio and proportion word problems. Here is a list of examples and practice problems:Percentage ...

  18. Ratio

    Use ratio and rate reasoning to solve real-world and mathematical problems, for example, by reasoning about tables of equivalent ratios, tape diagrams, double number line diagrams, or equations. Grade 6 - Ratios and Proportions (6.RP.A.3b) Solve unit rate problems including those involving unit pricing and constant speed.

  19. How to Calculate Ratios: 9 Steps (with Pictures)

    You can treat a ratio as a fraction or a division problem: 1:4 = 1 / 4 = 1 ÷ 4. Solve this problem with long division (or a calculator) and you'll get the answer as a decimal: 0.25. To make this a percent, just move the decimal point two spaces to the right: 0.25 = 25%. Thanks!

  20. Ratios

    Using Ratios. The trick with ratios is to always multiply or divide the numbers by the same value. Example: A Recipe for pancakes uses 3 cups of flour and 2 cups of milk. So the ratio of flour to milk is 3 : 2. To make pancakes for a LOT of people we might need 4 times the quantity, so we multiply the numbers by 4: 3 ×4 : 2 ×4 = 12 : 8.

  21. Solving ratio problems

    Divide the total amount in the initial ratio. Find the value of one part by dividing the total amount by the sum of the parts. Multiply the value of one part by the number of parts for each share ...

  22. Ratio Math Problems

    Step 1: Assign variables: Let x = amount of corn. Write the items in the ratio as a fraction. Step 2: Solve the equation: Cross Multiply. 2 × x = 3 × 5. 2x = 15. Isolate variable x. Answer: The mixture contains 7.5 pounds of corn.

  23. Liquidity Ratio

    Examples, Ouestions and Answers of Liquidity Ratio. 1. Calculate Liquid Ratio from the given details. Solution: Quick Ratio = Quick Assets / {Current Liabilities/Quick Liabilities} Quick Assets = All Current Assets - Stock - Prepaid Expenses = 85000 - (20000+5000+10000) = 50,000. Quick Liabilities = All Current Liabilities - Bank ...