From free introductory classes to advanced trading strategies, we aim to help you increase your knowledge and trade smarter. Let's make investing easier and not alone.
-Moomoo News Team
Questions you may have:
What is the current ratio？What does it mean?
How to look up the current ratio on Moomoo?
What is the current ratio?
The current ratio represents a company's ability to pay its current liabilities with its current assets.
The formula is as follows：
Source：Moomoo
What does it mean?
The current ratio is an important measure of financial health since creditors can measure a company's ability to pay off its debts within a year.
The current ratio varies from different industries, and the general number is between 1.5 and 3 for healthy companies.
Source：Moomoo
Company ABC and Company XYZ come from the same industry and have different current assets and current liabilities. Which company has stronger short-term solvency？
Source：Moomoo
ABC Company has a higher current ratio which means the stronger the liquidity of ABC assets, the stronger the short-term solvency.
How to look up the current ratio on Moomoo?
It can be done with just a few clicks (take Apple for example):
1.Search the ticker '$Tesla, Inc.(TSLA.US)$'
2.Select 'Tesla Inc' to go to the quotation page
3.Find the 'Financial' tab and it will show the current ratio
By Mia
Comment(3)
Nice simple explanation
very helpful
👍🏻👍🏻👍🏻
Reason For Report