Current liabilities
Obligations due within the operating cycle.
Worked example · a round-number company
Current liabilities$1.0B÷Total assets$10.0B=Share of assets10.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↕Neither higher nor lower is better. Can be compared with current assets to examine near-term liquidity.
Keep in mind
- A current ratio is often unavailable or inappropriate for financial companies.