Current ratio

Formula: Current ratio = Current assets / Current liabilities

• Current assets = CVM account 1.01 of the balance sheet (cash, financial investments, receivables, inventories — what should turn into cash within 12 months).
• Current liabilities = CVM account 2.01 (short-term obligations).
• No averaging: it is a SNAPSHOT of the balance sheet at the end of the fiscal year, not a rate over the period — unlike ROE/ROIC/ROA, which use average capital.

It measures whether what the company has in the short term covers what it owes in the short term. Above 1.0x, current assets cover current liabilities; below that, the company depends on generating cash or rolling over debt. It is an indicator of short-term solvency, not of profitability — and it does not replace looking at the cash flow (a company can have high liquidity because of stuck inventory, or low and healthy liquidity because it turns cash over very fast, as in retail).

Only for the COMMON chart of accounts: banks and intermediation insurers do not segregate assets/liabilities into current and non-current in the same way, so the current ratio is not published for them — absence is more honest than a forced number.

Source, treatment and limitations: see fontes_e_padronizacao.md.