Posted inAll sectors / Finance & Control / Financial

Current Ratio

Definition of this KPI:
The Current Ratio is a fundamental financial metric that assesses a company's short-term liquidity and its ability to meet its immediate financial obligations. It provides insights into the company's capacity to cover its current liabilities with its current assets.

  • This KPI can be calculated as: Current assets / current liabilities
  • The KPI will be measured as: number (amount of units, rating, etc)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Financial stability
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