I am getting a current ratio of 13 to 29.8 in a new project report as there is less current liabilities projected so what does it means? Am i doing something wrong? is it correct to have this kind of current ratio?
nishant sahai (a) (43 Points)
31 March 2021I am getting a current ratio of 13 to 29.8 in a new project report as there is less current liabilities projected so what does it means? Am i doing something wrong? is it correct to have this kind of current ratio?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 31 March 2021
Actually it is represented as 13:1 or 29.8:1 which means, for every unit of liability, there are 13 units of assets or 29.8 units of assets. This is a high ration and nothing to worry about because the actual results will vary/
CAclubindia
