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Current ratio: What it is and how to calculate itfor a high 1.54 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 ...
Below are the general guidelines for interpreting a good current ratio: 1. Current Ratio Between 1.2 and 2.0 – Ideal for Most Industries A current ratio between 1.2 and 2.0 is typically ...
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Understanding the Net Working Capital RatioThe net working capital ratio (also referred to as the current ratio) is a financial metric used to evaluate a business’s liquidity. It specifically measures the company’s capacity to settle ...
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