A current ratio less than 1.0 means that current liabilities exceed current assets. A firm having a current ratio less than 1.0 has:

- enough assets that will convert to cash in time to pay all of the debts payable within the next twelve months

- sufficient short-term assets to meet its short term obligations provided that all assets sell at their stated book value

- more debts due within the next year than assets that should convert to cash within that same time period

- less total assets than it does debts payable within the upcoming twelve months

- more total assets than it does debts payable within the upcoming 12 months