Financial Ratios
Current Ratio
Definition
What is Current Ratio?
Current assetsAssets expected to be realised, sold, or used within the normal operating cycle or about one year. divided by current liabilitiesObligations expected to be settled within the normal operating cycle or about one year..
Example in practice
How This Looks in Practice
₦2 billion current assets divided by ₦1 billion current liabilities gives a current ratio of 2.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.