Finance
Calculate the current ratio
=B1/B2How it works in Excel
- B1 is current assets.
- B2 is current liabilities.
- Above 1 means short-term assets cover short-term debts.
- What counts as healthy varies by industry.
The idea in general
It checks if a company can pay the bills due within a year.
What I assumed
- Current assets are in B1 and current liabilities are in B2.
Check the result on your own data before relying on it.