2 min read
Current ratio = current assets ÷ current liabilities. Around 1.5–2 is generally comfortable; under 1 means bills exceed near-cash assets.
How to use it
Enter your current assets (cash, stock and money owed to you within a year) and current liabilities (what you owe within a year). The ratio shows how many times over your short-term assets could cover your short-term debts.
A ratio comfortably above 1 means you can meet your bills without selling long-term assets or borrowing. Very high can mean cash sitting idle; below 1 is a warning sign worth acting on early.
Everything runs in your browser — nothing you type is sent or stored. Results are illustrative, not a quote or a credit decision.
Frequently asked questions
What's a good current ratio?
It varies by sector, but 1.5 to 2 is a common comfort zone. Retail and hospitality often run lower because they hold little credit; project businesses run higher. Compare against your own trend and your industry.
How is it different from the quick ratio?
The quick ratio strips out stock, because inventory can be slow to turn into cash. If your current ratio looks healthy but most of it is stock, check the quick ratio too.
Is this a quote?
No — it's a free illustration. Your actual Credicorp offer depends on an assessment of your company.
Related reading
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.