Home > Term: Current ratio
Current ratio
The ratio of current assets divided by current liabilities that shows the ability of a utility to pay its current obligations from its current assets. A measure of liquidity, the higher the ratio, the more assurance that current liabilities can be paid.
- Part of Speech: noun
- Industry/Domain: Energy
- Category: Coal; Natural gas; Petrol
- Company: EIA
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- Harry8L
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(London, United Kingdom)