Adjusted current ratio

Method of calculation

Formula for adjusted current ratio: (current assets - receivables above 12 mths - receivables claimed in court) / (short-term liabilities - short-term liabilities above 12 mths + current principal repayment)

Ratio's interpretation

  • The interpretation is the same as in the case of current ratio, but with the difference of more detailed information on liquid assets and short-term liabilities.