Current Ratio

Whether short-term assets cover short-term bills.

Assets due to turn into cash within a year, divided by bills due within a year. Above 1 means short-term obligations are covered on paper.

It is a liquidity check rather than a profitability one: a company can be profitable and still get into trouble if cash arrives later than the bills do.

Current assets ₹5,000 crore against current liabilities ₹2,500 crore → current ratio = 2.0.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.