# Current Ratio Formula Explained (with SaaS Examples)

DevFeed: [Current Ratio Formula Explained (with SaaS Examples)](<https://devfeed.tech/articles/current-ratio-formula-explained-with-saas-examples-9781.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/current-ratio-formula/>)

Author: Ayush Agarwal

Published: 2026-04-21T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>)

Tags: [examples](<https://devfeed.tech/tags/examples.md>), [finance](<https://devfeed.tech/tags/finance.md>), [financial](<https://devfeed.tech/tags/financial.md>), [how-to](<https://devfeed.tech/tags/how-to.md>), [learn](<https://devfeed.tech/tags/learn.md>), [metric](<https://devfeed.tech/tags/metric.md>), [revenue](<https://devfeed.tech/tags/revenue.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-metrics](<https://devfeed.tech/tags/saas-metrics.md>), [series-b](<https://devfeed.tech/tags/series-b.md>)

## AI overview

This guide explains how to calculate and interpret the current ratio for SaaS companies. It covers how deferred revenue, annual prepayments, and Merchant of Record payout timing can affect the ratio, with worked balance-sheet examples from Seed through Series B.

## Source excerpt

Learn how to calculate the current ratio, understand what it means for SaaS companies with deferred revenue and annual prepayments, and see worked examples at Seed through Series B.