Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningA measure of short-term liquidity.
Technical meaning
Current assets divided by current liabilities.
Practical example
Current assets of Rs 30 lakh and current liabilities of Rs 20 lakh give a ratio of 1.5.
Related terms
Official reference
General usage
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