How to calculate Current Ratio

Formula

Current ratio = current assets ÷ current liabilities

SQL query

This example assumes: balances(as_of, account_class, amount). It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT as_of,
       SUM(amount) FILTER (WHERE account_class = 'current_asset') * 1.0
         / NULLIF(SUM(amount) FILTER (WHERE account_class = 'current_liability'), 0) AS current_ratio
FROM balances
GROUP BY as_of
ORDER BY as_of;

Common mistakes that make Current Ratio wrong

• Slow-moving inventory counts as an asset but may not pay a bill; see the acid-test ratio.
• Healthy ranges differ by industry; compare with your own history and peers.
• Year-end window dressing can distort a single snapshot.

Ask for Current Ratio in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

• What is our current ratio at each quarter end?
• Has our current ratio improved since last year?