What is A Current Ratio and Why Does It Matter?

To achieve your short-term and longer-term financial goals, you need to know and understand your financial position. Preparing financial statements will help you evaluate strengths and weaknesses.

Personal Net Worth As A Key Benchmark

Net worth is a great way to review your personal financial data accounts at a point in time.

Liquid Net Worth As A More Realistic View

Liquid net worth is an even better and more realistic benchmark because it focuses on your assets’ liquid nature.

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What Is The Current Ratio?

When measuring your current ratio, your focus is on existing assets you can convert into cash within a year and current liabilities due within the year.

Evaluating Your Current Ratio

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This ratio is essential to avoid money shortfalls but may highlight your liquid position to maximize your business growth or family wealth.

The Current Ratio Definition

The current ratio relates current assets to current liabilities and is easy to calculate.

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