Liquidity ratios are important financial metrics that can determine whether a company can pay off its short-term debts without having to raise more capital. One of these ratios is the current ratio, ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Katharine Beer is a writer, editor, and archivist based in New York. She has ...

What is a good current ratio? A good current ratio should be higher than one. This would indicate that the company can cover its liabilities with its assets. If the current ratio is lower than one, it ...

What does the current ratio show? The current ratio shows a company’s ability to pay off debt. It can have a significant impact on how traders and investors see a company, which means the ratio can ...

How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the ...