The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize ...

The current ratio is calculated by dividing a company's current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency. Because the current ratio compares short-term ...

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David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

The CAPE ratio formula is as follows: CAPE Ratio = Current Price / Average Inflation-Adjusted Earnings (Last 10 Years) For example, if a stock is trading at $200 and the average inflation-adjusted ...