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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