current ratio
noun[C]
ukus(alsoacid ratio);(alsoacid-test ratio);(alsoliquid ratio)ACCOUNTING,FINANCE
ameasureof a company'sabilitytopaycostsand makenecessarypaymentsin the nearfuture. Thecurrentratioiscalculatedbydividingthevalueof a company'scurrentassetsbyitscurrentliabilities:
This is thehighestcurrentratiothat thecompanyhasachievedin over 10years.