Current Assets ÷ Current Liabilities = Current Ratio $500,000 ÷ $360,000 = 1.39 : 1...
Current Assets ÷ Current Liabilities = Current Ratio
$500,000 ÷ $360,000 = 1.39 : 1
What does this 1.39:1 mean? Answer:
Is it better to have a lower or higher current ratio?
Homework Answers
Current ratio = Current assets/Current liabilities
= 500000/360000
Current ratio = 1.39:1
Higher current ratio is better. Because if current ratio is higher then it would be deemed that company's liquidity is in better situation
Add Answer to:
Current Assets ÷ Current Liabilities = Current
Ratio
$500,000 ÷ $360,000 = 1.39 : 1...
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1. Current Ratio - Current assets/Current liabilities
1. Current Ratio - Current assets/Current
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