Current Ratio

Has Calculator

What it means

Current Assets ÷ Current Liabilities — short-term ability to pay bills.

Why it matters

Above 1.0 means you can cover the next year's obligations from current assets.

How to calculate — with Cawan's Shoes

Cawan's Shoes: $200M CA / $120M CL = 1.67. Healthy for retail.

What's at stake if you ignore this

Below 1.0 signals cash crunch and can trip loan covenants.