Current Ratio
Calculate the current ratio, a liquidity ratio that measures a company’s ability to pay off its short-term liabilities with its current assets.
The current ratio is calculated by dividing a company’s current assets by its current liabilities. It indicates whether a company can meet its short-term obligations using its short-term assets.
The formula is as follows:
\[\text{Current Ratio} = \text{Current Assets} / \text{Current Liabilities}\]Also known as: short-term liquidity, working capital ratio.
Current Ratio in Python
get_current_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_current_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
current_ratios = toolkit.ratios.get_current_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 1.0746 | 0.8794 | 0.988 | 0.8673 | 0.8933 |
| TSLA | 1.3753 | 1.532 | 1.7259 | 2.0249 | 2.1644 |
Parameters
get_current_ratio accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.