TeachMeFinance.com - explain current ratio
current ratio -- Current Assets/Current Liabilities. This
ratio should be 1.0 or greater for liquidity. If it drops
below 1.0, the ability to pay bills is impaired. If it is
greater than 1.0, there is a possibility that assets are not
being used efficiently to generate new revenue.
Current Ratio -- The ratio of current assets to liabilities. Also called "quick ratio."
current ratio -- the ratio of total current assets to total current liabilities, calculated by dividing current assets by current liabilities.
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