As a general rule, a current ratio of 0.5 to 1 or better is satisfactory.

Name: As a general rule, a current ratio of 0.5 to 1 or better is satisfactory.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

A current ratio of 0.5 to 1 indicates that a company has only 50 cents in current assets for every dollar of current liabilities, which is generally considered unsatisfactory. A ratio of 1 or higher is typically seen as satisfactory, indicating that the company can cover its short-term liabilities with its short-term assets.

As a General Rule, a Current Ratio of 0