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TeachMeFinance.com - explain Current ratio Current ratio The term 'Current ratio' as it applies to the area of energy can be defined as ' The ratio of current assets divided by current liabilities that shows the ability of a utility to pay its current obligations from its current assets. A measure of liquidity, the higher the ratio, the more assurance that current liabilities can be paid'. Previous 5 Terms: Current assets Current Dental Terminology Current liabilities Current Meter Current Procedural Terminology Next 5 Terms: Curtain Drain Curtain grouting Curved gravity dam cusec cusk About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.