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Top Financial Analysis Ratios has over 60 ratios divided into five sections:

  • Profitability and Return
  • Long-term Solvency
  • Short-term Solvency
  • Efficiency and Turnover Ratios
  • Shareholders’ Investment Ratios

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Quick Definition

Reviews the debt structure of a company.

Current to Total Liabilities Formula

Explanation of Current to Total Liabilities

The Current to Total Liabilities ratio measures the percentage of Total Current Liabilities to Total Liabilities, a useful measurement when reviewing a company’s debt structure.

Importance of Current to Total Liabilities

An increasing Current to Total Liabilities ratio is usually a negative sign, showing the company’s proportion of Total Current Liabilities are increasing compared to its Total Liabilities. This ratio may vary by industry, but you also need to compare several companies in the same industry to get an understanding of the typical ratio value, and how different this ratio value can be between companies.

Although an industry average for this ratio may exist, some companies in the same industry operate well with more Current Liabilities than others – a sign that this ratio is not the only means of reviewing a company’s debt structure.