# Current Ratio Formula

Finance Formulas / June 21, 2018 / Cecelia Weiss

Economic profit is not recorded on a company’s financial statements nor is it required to be disclosed to regulators, investors or financial institutions. Meanwhile, accounting profit is a widely used performance measurement to indicate the overall financial success of an organization. Accounting profit measures the actual cash outlays and inflows, while economic profits incorporate a "what if" analysis. For this reason, an entity may report an accounting profit but realize an economic loss because resources could have been utilized better.

### Inventory Cost Formula

#### Gdp Income Approach Formula

##### Book Value Formula

###### Accounting Rate Of Return Formula

The cash ratio is the ratio of a company's total cash and cash equivalents (CCE) to its current liabilities. The metric calculates a company's ability to repay its short-term debt; this information is useful to creditors when deciding how much debt, if any, they would be willing to extend to the asking party. The cash ratio is generally a more conservative look at a company's ability to cover its liabilities than many other liquidity ratios because other assets, including accounts receivable, are left out of the equation.

So how do you know if you’re spending the right amount? You need some numbers. First, you need to know how long the average customer sticks with you before they cancel their service. Because of course the longer a customer sticks with you, the more valuable they are.

The total asset turnover ratio calculates net sales as a percentage of assets to show how many sales are generated from each dollar of company assets. For instance, a ratio of .5 means that each dollar of assets generates 50 cents of sales.

### Gallery Of Current Ratio Formula

### Rate This Current Ratio Formula

64 out of 100 based on 933 user ratings

In Case You Missed It

## Amortization Payment Formula

## Days Sales In Inventory Formula

### Sales Acceleration Formula

#### Direct Materials Used Formula

##### Coupon Rate Formula

###### Cash Conversion Cycle Formula

##### Leave Your Reply on Current Ratio Formula

Continue Reading Below

## Retail Markup Formula

## Beginning Inventory Formula

### Net Purchases Formula

#### Contribution Margin Per Unit Formula

##### Gdp Per Capita Formula

###### Cost Per Thousand Formula