Current Ratio Part 1 : How to Calculate and Interpret Current Ratio

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What is current ratio? How to calculate current ratio? How to interpret current ratio?

What you will learn:
1. Financial ratios
2. What is liquidity?
3. Two main liquidity ratios – current ratio and quick ratio
4. What is current ratio?
5. How to calculate current ratio?
6. Define current assets
7. What is the composition of current assets?
8. Define current liabilities
9. What is the composition of liabilities?
10. Interpret the current ratio
11. Current ratio compared to competitors
12. Current ratio compared to last year
13. Current ratio compared to company goal
14. Current ratio compared to industry average
15. Meaning of higher current ratio
16. Meaning of lower current ratio

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