Financial Health Assessment

Did you know a current ratio under 1.00 means a company’s one-year debts are more than its quick cash assets1? This crucial ratio, known as the working capital ratio, shows if a company can pay its short-term bills. A ratio above 3.00 might show inefficiency in using assets or managing capital1. It’s important to find a good middle ground. Too high or too low can hint at financial or operational problems. The current ratio is key for financial review. It… Read More »Understanding the Current Ratio: Financial Health