Your current ratio, a comparison of current assets to current liabilities, will be particularly important to you if you're thinking of borrowing money or getting credit from one of your suppliers.
Potential creditors use this ratio to measure a company's liquidity or ability to pay off short-term debts.
Though acceptable ratios may vary from industry to industry, a current ratio of 2.00:1 is considered the norm.
The formula
Current assets divided by current liabilities. | 
