REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
|
|
 |
Current
ratio
This reflects
a company’s current liquidity position, indicating its ability
to meet current liabilities, or short-term creditors, out of
current assets. The current ratio is the result of dividing
the current assets total by current liabilities, and shows the
number of times current liabilities are covered by current assets.
A value greater than 1.00 indicates fully covered. For banks
and insurance companies, the current ratio does not apply, and
the abbreviation ‘na’ appears.
Calculation:
CURRENT ASSESTS
----------------------
= CURRENT RATIO (r)
CURRENT LIABILITIES
|
|
|
