Current ratio

Others 125 views 2 replies

nishant sahai

43 Points Joined December 2011

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?

Replies (2)

yasaswi gomes

My grammar is 💯 good I

7296 Points Joined March 2019

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/