{"id":3298,"date":"2025-05-12T09:41:08","date_gmt":"2025-05-12T07:41:08","guid":{"rendered":"https:\/\/pro-visions.anvetogroup.com\/current-ratio\/"},"modified":"2025-07-15T15:11:55","modified_gmt":"2025-07-15T13:11:55","slug":"current-ratio","status":"publish","type":"page","link":"https:\/\/pro-visions.eu\/en\/current-ratio\/","title":{"rendered":"Current Ratio"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Current Ratio = Current Assets \/ Total Current Liabilities<\/strong><\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/e.pcloud.link\/publink\/show?code=XZ9WclZ3alMwTAxAnjr0D5NxtdstSitfMs7\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"360\" height=\"360\" src=\"https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview.png\" alt=\"\" class=\"wp-image-2359\" style=\"width:150px\" srcset=\"https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview.png 360w, https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview-300x300.png 300w, https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview-150x150.png 150w\" sizes=\"auto, (max-width: 360px) 100vw, 360px\" \/><\/a><\/figure>\n<\/div>\n<ul class=\"wp-block-list\">\n<li>It shows the ability of the company to meet its short-term obligations using assets that can be converted into cash within the period of maturity of its obligations.<\/li>\n\n\n\n<li>The more predictable the cash inflows of a company are, the lower the ratio is generally acceptable, although this is mainly a function of the industry to which the company belongs.<\/li>\n\n\n\n<li>The higher the ratio, the greater the &#8220;margin of safety&#8221; of the company&#8217;s short-term creditors.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>Business actions to improve the Index<\/strong><\/p>\n\n<ul class=\"wp-block-list\">\n<li>Increase in Total Current Assets, i.e. Inventories, Receivables and Cash without a corresponding increase in liabilities<\/li>\n\n\n\n<li>Reduce Total Short-Term Liabilities through repayment of Balances, or through Restructuring of Debt in favor of Long-Term<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Current Ratio = Current Assets \/ Total Current Liabilities Business actions to improve the Index<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-3298","page","type-page","status-publish"],"_links":{"self":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/comments?post=3298"}],"version-history":[{"count":2,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3298\/revisions"}],"predecessor-version":[{"id":3300,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3298\/revisions\/3300"}],"wp:attachment":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/media?parent=3298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}