Variable Description

Name
Current ratio
Label
Current ratio
Description

Total current assets divided by total current liabilities. The current ratio gives an indication of a business’s ability to pay its short-term liabilities. A ratio less than 1 indicates that current liabilities are greater than current assets and that the business may struggle to pay its short-term liabilities. A ratio higher than 1 means a business should be able to pay its short-term liabilities. The ability to meet current liabilities in the short-term is often dependent on how liquid the current assets are.

This variable is not part of a dataset.

Representation

Representation Type
Numeric
Type
Integer
Variable is a Weight
False
Aggregation Method
Unspecified
Temporal
False
Geographic
False

Concept