What Is the Current Ratio? Formula, Worked Example and What Good Actually Looks Like
Current assets divided by current liabilities. The formula takes ten seconds, and almost everything useful about the number is in what happens next. Here is how to calculate it from a UK balance sheet, why the famous 2:1 rule of thumb is mostly folklore, and why Tesco runs at 0.59 while Persimmon runs at 3.99 and both are fine.
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