- The Current ratio is a liquidity ratio that measures a company’s ability to pay short term obligations or those due within one year. - It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables. - Formula – Current Ratio = Current Assets Current Liabilities - The Liquid ratio tells one’s ability to pay off its debt as and when they become due. - In other words, this ratio tells how quickly a company can convert its current assets into cash so that it can pay off its liability on a timely basis. - Liquid ratio is also called Quick Ratio. - Formula – Liquid Ratio = Quick Assets Quick Liabilities Year Current Current Current Ratio= Liquid Ratio= Assets Liabilities Current Asset Quick Asset Current Liability Quick Liability 2018-19 2124.35 1518.27 2124.35 / 1518.27 = 1.39 1386.89 / 1518.27 = 0.91 2017-18 1958.84 1234.48 1958.84 / 1234.48 = 1.58 1252.64 / 1234.48 = 1.01 2016-17 1785.61 1208.99 1785.61 / 1208.99 = 1.47 1182.99 / 1208.99 = 0.97 Thank You