What is a good current ratio? The ideal current ratio varies by industry. However, an acceptable range for the current ratio could be 1.0 to 2. Ratios in this range indicate that the company has enough current assets to cover its debts, with some wiggle room. A current ratio lower than ...
A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts.A current ratio below 1 means that the company doesn’t have enough liquid assets to cover its short-term liabilities. A ratio of 1:1 indicates ...
What is a good current ratio for my company? A good current ratio will depend on your industry, and the size of your business. Some business models have inherently higher current liabilities and operational expenses than others, while larger companies typically have higher current ratios because th...
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The current ratio is a financial metric used to evaluate a company's liquidity and short-term solvency by comparing its current assets to its current liabilities.
If the current ratio is 2.2:1, current assets are 33,000 and noncurrent assets are 55,000, then calculate the owners' equity. (Assume that all liabilities are current.) 1. A firm has net working capital of $1,100 ...
of short-term financial strength. The ratio determines whether current assets are sufficient to pay current liabilities a current ratio for a general manufacturing company above 2.0 is considered good. It means that the company has twice the amount of current assets as it has current liabilities....
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What Is a Good Expense Ratio? A "good" expense ratio will be determined by a variety of factors, such as if the fund is actively managed or passively managed. Generally, for an actively managed fund, good expense ratios range between 0.5% and 0.75%. Anything above 1.5% is considered high...
Both the quick ratio and current ratio measure a company’s short-termliquidity, or its ability to generate enough cash to pay off all debts should they become due at once. Although they’re both measures of a company’s financial health, they’re slightly different. The quick ratio ...