The current ratio looks at current assets that include cash on hand, the company's short-term investments, accounts receivable generated through sales, and inventory that the organization has to operate.

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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 does this by comparing a company's current assets, such as cash, marketable securities, accounts receivable, and inventory, to its current liabilities.

The Current Ratio Looks at Current Assets That Include Cash