Cash + Debtors + Inventory + Prepaid
For Quick Ratio calculation
Creditors + ST Loans + Accruals
Current Ratio
—
💡 Business Impact
The current ratio is the first number banks look at for creditworthiness. Below 1.0 is a red flag for lenders.
📊 Industry Benchmark
Current Ratio: Healthy 1.5–2.0 | Acceptable 1.0–1.5 | Risk <1.0 | Excess >3.0
Recommended Actions
✓ Maintain current ratio above 1.5 for loan eligibility
✓ Reduce short-term loans to improve ratio
✓ Convert short-term debt to long-term where possible
✓ Track ratio trend quarterly
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This result was created using VasyERP Free Business Tools — vasyerp.com
