Current Ratio

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

2017

2.44

2016

1.98

2015

2.05

2014

2.41

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