The current ratio measures a company's short-term liquidity — its ability to cover obligations due within a year using assets that can be turned into cash within a year. It's a quick read on whether a business can pay its near-term bills.
Current Ratio = Current Assets / Current Liabilities
A ratio above 1 means current assets exceed current liabilities, generally a sign of healthy short-term liquidity. Around 1.5–3 is often considered comfortable. Below 1 can signal liquidity stress; very high values may mean cash is sitting idle.
A company with $150 million in current assets and $100 million in current liabilities has a current ratio of 150 / 100 = 1.5 — it has 1.5 times the assets needed to cover its short-term debts.
Fin Screener reports the current ratio for each stock as part of its risk and financial-health breakdown, helping flag companies under short-term liquidity pressure.
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