The worth of a company (contained as current assets, including cash, accounts receivable and inventory,) divided by current financial liabilities, including all short-term debts (This ratio roughly measures a company's financial risk: logically, the more the financial liabilities, the riskier the company. Thus, small current ratios indicate high risk.)
Last edited on March 26, 2009© 2009 UpDown. All Rights Reserved.
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