Financial Ratios
Current Ratio
Definition
What is Current Ratio?
Current assets divided by current liabilities.
Example in practice
How This Looks in Practice
₦2 billion current assets divided by ₦1 billion current liabilities gives a current ratio of 2.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.