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Fundamental
Current Ratio
Current Assets / Current Liabilities; liquidity gauge
Definition
Current ratio measures a company's ability to pay short-term obligations with short-term assets. A ratio above 1.0 indicates positive working capital, while ratios below 1.0 suggest potential liquidity issues. Industry norms vary.
Related Topics
#liquidity
#working capital
#short-term assets
#solvency
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Related Terms
Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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