What is the meaning of the term current ratio?

Current Ratio is an indicator of a firm's ability to meet short-term financial obligations, it is the ratio of current assets to current liabilities. Though every industry has its range of acceptable current-ratiOS, a ratio of 2:1 is considered desirable in most sectors. Since inventory is included in current assets, acid test ratio is a more suitable measure where saleability of inventory is questionable. Formula: Current assets divided by Current liabilities.Refer to link below