The current ratio is a

A) liquidity ratio.
B) profitability ratio.
C) solvency ratio.
D) cash flow ratio.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its existing assets.