The current ratio measures an organization’s liquidity serving as an indicator of the ability to meet current obligations. This simple calculation matches the institution’s short-term assets with liabilities expected to come due during the same period.
Generally accepted standards for this ratio indicate a 2:1 coverage as being desirable.
The numerator is total current assets; the denominator is total current liabilities. Both numbers come directly from the Statement of Net Position.
|
Year |
Ratio |
|
2022 |
5.54 |
|
2021 |
5.36 |
|
2020 |
3.14 |
|
2019 |
2.38 |
|
2018 |
2.31 |