Current Ratios. Calculation help needed!!

Hello, this is really for my business work but its a bit more mathematical so just wondering if anyone can help! I need to work out my current ratio which is my current assets divided by current liabilities. The calculation is 47402/57578=0.82326583. I need this in ratio form. My business work says a healthy ratio is 1:5:1 or more but no more than 3:1. I have no idea where my number fits regarding this. Immediate help please! Thanks

Reply 1

brianeverit

9

Original post by Ladean123

Hello, this is really for my business work but its a bit more mathematical so just wondering if anyone can help! I need to work out my current ratio which is my current assets divided by current liabilities. The calculation is 47402/57578=0.82326583. I need this in ratio form. My business work says a healthy ratio is 1:5:1 or more but no more than 3:1. I have no idea where my number fits regarding this. Immediate help please! Thanks

Should the healthy ratio be 1.5:1 rather than 1:5:1. If so then yours is 0.823:1 so not very healthy

Reply 2

james22

16

Your ratio is approximately 0.8:1, or 4:5.

Reply 3

simran0297

ratio here just means that whatever answer you get when you divide the current assents and current liabilities you put it like this: answer:1 so in your case its 0.82:1

Reply 4

Ladean123

OP

2

Thanks everyone for your help

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Current Ratios. Calculation help needed!!

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