How do you calculae total assets using current liabilities and the current ratio?

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Answer

1255559

2026-09-05 21:20

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I am not sure if you can get total assets using the "current liabilities" and "current ratio" however, you can reverse the problem (formula) and get the current assets.

Say your company has 40M in current assets and 20M in current liabilities to get the current ratio, we take

40M (current assets) / 20M (current liabilities) = 2.0 (current ratio)

if we leave out the current assets we can take

20M (current liabilities) * 2.0 (current ratio) = 40M (current assets)

Let's do a couple more to prove the formula.

80M (ca)/25M (cl) = 3.2 (cr)

25M (cl) * 3.2 (cr) = 80M (ca)

33M (ca) / 11M (cl) = 3.0 (cr)

11M (cl) * 3.0 (cr) = 33M (ca)

M = Millions

ca = current assets

cl - current liabilities

cr - current ratio

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