Dados B3 › Glossary

Glossary

Current ratio

Whether what the company has in cash and receivables in the short term covers what it must pay in the short term.

What it is

Whether what the company has in cash and receivables in the short term covers what it must pay in the short term. Shown on the stocks pages.

How Dados B3 calculates it

current assets ÷ current liabilities, at the balance sheet date (no average). It is not published for banks and insurers.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Current assets of R$ 300 million and current liabilities of R$ 200 million: current ratio = 1.5.

What to watch for when reading it

• Above 1 current assets cover short-term liabilities; below, the company depends on generating cash or rolling debt.
• Stagnant inventory inflates the number; a retailer that turns cash quickly can be healthy with a low ratio.

See also

• Net debt / EBITDA
• Piotroski F-Score

Methodology · Guide · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.