Understand the basics of the current ratio, including its use in assessing a company's liquidity and learn how it is calculated in Microsoft Excel.

How to calculate the current ratio You can calculate the current ratio by dividing a company’s total current assets by its total current liabilities.

Explore total current assets, how to calculate them, and why they're important for evaluating a company's liquidity and financial health.

The goal of rational investors is to maximize total return under a given set of constraints.

The acid-test ratio, also known as the quick ratio, measures the liquidity of a company. Learn how to calculate acid-test ratio here.