What financial information does the current ratio measure?
March 7th, 2010 | by admin |kitsune12 asked:
How has the current ratio relate to the other liquidity ratios?
How has the current ratio relate to the other liquidity ratios?
Which financial ratios would you use – and how – to determine whether a company will be able to meet its commercial bank loan payments?
One Response to “What financial information does the current ratio measure?”
By **wishin** on Mar 8, 2010 | Reply
current ratio measures your current debt to current assets, in other words how able you would be to pay off you debts if you had to right now.
current ratio includes cash so this would tell a bank if you have cash to pay them with