Do you know your current ratio?

21 November 2020

Admin User


This measures the short term liquidity of your business. Which also indicates the ability of your business to pay its bills. 


Most businesses aim for a ratio of 2:1, i.e., the business should have twice as many short term assets as short term liabilities.


The current ratio is calculated as follows: Current Assets / Current Liabilities.


If you would like to discuss further please contact us:
 McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
 www.mcnamaraandcompany.com.au/contact-us
 Phone +61 3 9428 1062
 Email admin@mcnamaraandco.com

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