The current ratio is an indicator of a companys liquidity and ability to meet its short-term debts.
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The current ratio is an indicator of a company’s liquidity and ability to meet its short-term debts. What further information would you require before concluding whether or not a specific company’s current ratio is ‘good’ or ‘bad’?
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While the current ratio is indeed a useful indicator of a companys shortterm liquidity and ability to meet its immediate obligations its important to consider additional information before categorizin...View the full answer
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Related Book For
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
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