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What is meaning of current ratio

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What is meaning of current ratio

Posted by Ishu Tomar 5 years, 1 month ago

CBSE > Class 12 > Accountancy

1 answers

Meghna Thapar 5 years, 1 month ago

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn't have enough liquid assets to cover its short-term liabilities. The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Munni Lal 1 year, 5 months ago

CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Tanishk Kabra 1 year, 5 months ago

CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Mahi . 1 year, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

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